XRP News Today: XRP Token Burn Drives Scarcity as Analysts Forecast $20–$3,500 Price Range by 2050

The XRP Ledger (XRPL) continues to reduce the supply of XRP through a built-in burn mechanism, where a small amount of XRP is permanently destroyed with each transaction. Originally designed to prevent network spam and ensure long-term sustainability, the burn process has sparked interest in how it might influence XRP’s future valuation, particularly over the next 25 years [1].

Currently, the circulating supply of XRP stands at 99,985,821,508 tokens, a slight decrease from the initial 100 billion. This reduction is driven by an average daily burn of approximately 2,700 XRP, which accumulates to an annual burn of about 985,500 XRP. At this rate, by the end of 2050, the total number of burned tokens is expected to reach around 25 million, reducing the total supply by 0.025%. While this change is relatively small in quantitative terms, analysts suggest it could have a psychological impact on investor sentiment and market dynamics [1].

To explore how adoption and supply reduction might influence XRP’s valuation by 2050, analysts have outlined three potential price scenarios. The first scenario assumes a gradual adoption of XRP by banks, fintech firms, and remittance companies. In this case, a compound annual growth rate of 6–8% could push the price to between $18 and $25 by 2050. When the token burn is factored in, the projected range increases slightly to $20–$28, with the burn reinforcing the perception of scarcity [1].

The second scenario envisions a more aggressive expansion of XRP’s role in cross-border settlements, tokenized assets, and central bank digital currency infrastructure. Under this model, with adoption growing at 12–15% annually, XRP’s price could reach $150–$250 by 2050. Higher transaction volumes would also accelerate the burn rate, potentially removing 500 million to 1 billion XRP over 25 years—about 1% of the total supply. This additional reduction could support a higher valuation range of $180–$300 [1].

The most optimistic scenario assumes XRP becomes a global reserve settlement asset, supporting trillions in daily financial flows. In this case, the price could reach $1,000–$2,500 by 2050, excluding the effect of token burns. However, with increased transaction volumes, the network could destroy between 5–10 billion XRP over the same period, reducing the total supply by 5–10%. This meaningful supply reduction could push valuations into the $1,200–$3,500 range [1].

While the token burn mechanism was not intended as a price driver, its cumulative effect on supply over time could influence long-term valuation. Ultimately, XRP’s price trajectory by 2050 will depend on the extent of its adoption across financial systems. The combined influence of market demand, institutional integration, and ongoing token burns could determine whether XRP remains in a moderate price range or experiences a significant rise in value [1].

Source:

[1] Projected XRP Price for 2050 as XRPL Destroys 985,000 XRP a Year – TimesTabloid (https://timestabloid.com/projected-xrp-price-for-2050-as-xrpl-destroys-985000-xrp-a-year/)