XRP News Today: XRP Could Reach $2,500 With Global Adoption And Supply Shock

Jake Claver, a crypto expert and CEO of Digital Ascension Group, recently discussed the possibility of XRP reaching a price of $2,500 in a video shared by Xaif. While this figure may seem extreme, Claver argued that under specific conditions, it is not entirely out of the question. He emphasized that such a price rally would not be the result of simple speculation or market hype but would require significant global macroeconomic shifts and a substantial supply shock.

Claver's argument is grounded in the principles of supply and demand economics. He dismissed the notion that XRP's market cap alone determines its price, instead focusing on the circulating supply available for purchase. This circulating supply influences liquidity and, consequently, the price. For XRP to reach $2,500, the available supply on the open market would need to be drastically reduced, creating conditions for a supply shock. This scenario could involve high-volume institutional usage or massive demand driven by adoption in international financial infrastructure.

XRP's supply mechanics further support the potential for a significant price increase. Unlike many cryptocurrencies that allow for the minting of additional coins, XRP has a fixed supply of 100 billion tokens. The original minting account has been "blackholed," meaning no one can access it, and no new XRP can ever be created. Additionally, XRP has a built-in deflationary mechanism, with around 5,000 tokens burned daily through transaction fees. Claver described XRP as "the only deflationary asset besides like uranium," highlighting its uniqueness in the crypto space.

However, scarcity alone will not drive XRP to $2,500. Claver emphasized that significant global developments would be necessary for such a valuation to be reached. This could include XRP being adopted as a settlement layer in cross-border finance or being used at scale in real-time liquidity systems. Ripple’s Chief Technology Officer (CTO), David Schwartz, recently stated that XRP is on the cusp of mass institutional adoption, which could contribute to XRP’s growth and potentially help it reach the target price.