XRP News Today: XRP's Scarcity and Institutional Demand Could Drive 4851% Price Surge

In the dynamic landscape of digital assets, XRP has consistently been a focal point of discussion, particularly due to its strong ties to global finance and its potential to revolutionize cross-border payments. Recently, a post by crypto commentator Ghost on X has brought renewed attention to XRP, highlighting its scarcity and potential for significant price appreciation.

Ghost's analysis centers on the distribution and potential value of XRP, using a hypothetical market cap of $5 trillion. He explores how XRP might be allocated among banks if it were adopted as a liquidity solution across the global financial system. Assuming a total supply of 99 billion XRP and a price of $48.51, Ghost calculates that if just 40 banks were using XRP, each would hold approximately 2.5 billion tokens. If 98 banks joined in, each would receive about 1 billion XRP. With 150 banks, the figure drops to around 660 million per bank, and if 300 institutions were involved, each would hold just 330 million XRP. Ghost's conclusion is that the more widespread the adoption, the less XRP is available per institution, and this scarcity could drive significant price appreciation.

Ripple Labs, the company behind XRP, has been strategically positioning the asset as a bridge currency for cross-border payments. Through its On-Demand Liquidity (ODL) service, Ripple enables instant settlement between currencies without the need for pre-funded accounts. This service is already being used by financial institutions in over 40 countries. Ripple’s ambitions are clear: to build the future infrastructure of global finance. In 2024, Ripple launched RLUSD, a U.S. dollar-backed stablecoin, further expanding its ecosystem and signaling its commitment to regulatory compliance and institutional integration. Brad Garlinghouse, Ripple’s CEO, has repeatedly emphasized that XRP isn’t just a speculative token—it’s a tool designed to solve real financial problems. As more banks and payment providers seek faster, cheaper, and more reliable alternatives to legacy systems, XRP becomes an increasingly attractive option.

Adding to the scarcity argument is the fact that not all 99 billion XRP are in circulation. As of mid-2025, approximately 58.8 billion tokens are actively circulating, while the rest remain locked in Ripple’s escrow system or held by long-term investors. This significantly reduces the available supply, particularly if institutional demand begins to surge. If large financial institutions start accumulating XRP to power global liquidity solutions, retail investors may find themselves competing with entities that have far deeper pockets. This demand-supply imbalance could dramatically increase the token’s market value.