TLDR
- Google Gemini projects XRP could reach $66.67 per token if Ripple burns 20% of the total supply from escrow.
- XRP currently trades at $2.40 with a total supply of 99.9 billion tokens and 60 billion in circulation.
- Ripple controls 35 billion XRP tokens locked in escrow that could potentially be burned.
- The hypothetical burn would remove 19.98 billion tokens, reducing the total supply to 79.92 billion.
- The circulating supply would remain at 60 billion tokens, as the burn only affects escrowed holdings.
Google Gemini projects XRP could reach $66.67 per token if Ripple burns 20% of the total supply from escrow. The AI model calculated this price based on a hypothetical $4 trillion market cap scenario. Currently, XRP price trades at $0.40 with a market capitalization of $144 billion.
Supply Burn Could Transform XRP Market Dynamics
XRP currently maintains a total supply of 99.9 billion tokens. Approximately 60 billion tokens are presently circulating in the market. Meanwhile, Ripple controls 35 billion tokens locked in escrow.
The XRP community debates whether Ripple should burn these escrowed tokens. Many members believe such action could push XRP price higher. However, uncertainty remains about the actual impact on value.
Gemini analyzed what might happen if Ripple were to eliminate 19.98 billion tokens from its supply. This burn would reduce the total supply from 99.9 billion to 79.92 billion tokens. The escrow pool would drop from 35 billion to approximately 15.02 billion XRP.
Circulating supply would remain unchanged at 60 billion tokens after the burn. The reduction would only affect tokens locked in escrow. Therefore, the quantity of traded tokens remains constant initially.
Theoretical Model Shows Dramatic XRP Price Increase
Gemini emphasized that this forecast depends entirely on theoretical assumptions. Real outcomes would rely on investor demand and regulatory developments. Token utility also plays a crucial role in determining actual results.
The AI presented an “ultra-bullish” scenario with intense market excitement. Clear regulatory support would be necessary in this case. Additionally, XRP Ledger adoption would need to expand substantially.
Under these ideal conditions, XRP market cap could reach $4 trillion. This represents a 28-times increase from current levels. The entire crypto market currently holds a $4 trillion valuation.
Gemini divided the projected market cap by 60 billion circulating tokens. This calculation produced the $66.67 XRP price target. Such a level would mark a 27.8-times surge from today’s price.
The model suggests reduced future supply creates bullish pressure over time. A smaller available supply tends to boost value when demand remains steady. This effect intensifies as demand grows.
Gemini clarified that this analysis serves as a theoretical assessment only. The projection demonstrates the potential impact of a significant supply reduction. Market reaction determines whether such gains materialize in reality.
Ripple CTO Questions Burn Effectiveness
Ripple CTO David Schwartz previously suggested burns might not affect XRP price. He referenced Stellar’s 2019 supply burn as a comparison. That event showed a limited price impact despite the supply reduction.
The theoretical model assumes perfect market conditions and high adoption rates. However, actual results depend on multiple unpredictable factors. Regulatory clarity and investor sentiment remain key variables for XRP price.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
