TLDR
- XRP price could rise significantly by 2035 if the XRP Ledger adopts a fee-burning mechanism similar to Ethereum’s EIP-1559.
- Ethereum’s EIP-1559 burn mechanism has reduced supply and turned ETH into a deflationary asset, benefiting its long-term value.
- If XRPL introduces a similar fee-burning system, it could burn $4.4 billion worth of XRP annually, leading to a reduced supply.
- Gemini projects that XRP’s market cap could reach between $3 trillion and $5 trillion within the next decade.
- In a bullish scenario, XRP price could reach around $132.23 by 2035 with a reduced supply and increased demand for the token.
The XRP price could see a significant rise by 2035 if the XRP Ledger (XRPL) implements a fee-burning mechanism similar to Ethereum’s EIP-1559. EIP-1559 has altered how Ethereum operates by burning a portion of transaction fees, creating a deflationary trend. If the XRPL follows suit, it could push XRP’s value up, with projections suggesting a possible price of $132 by 2035.
XRPL Fee-Burning Could Burn $44 Billion in XRP
Ethereum introduced EIP-1559 in August 2021 as part of its London Hard Fork. The update changed Ethereum’s fee structure by introducing a base fee, a priority fee, and a fee cap. The base fee is automatically adjusted based on network congestion, and it is burned rather than paid to miners.
This shift made Ethereum more predictable in terms of transaction fees. More importantly, it turned ETH into a deflationary asset by reducing its circulating supply. According to data from the ultrasound.money, Ethereum has burned approximately 4.621 million ETH since the launch of EIP-1559, equivalent to about $18.48 billion.
Currently, the XRPL burns a small amount of XRP with each transaction to prevent spam. However, this feature is not designed to reduce the supply over time. If the XRP Ledger adopted a fee-burning model like Ethereum’s, it could lead to a higher burn rate and a reduced supply of XRP.
Estimates suggest that a similar mechanism could burn around $4.4 billion worth of XRP annually. Over the next decade, this could amount to a total of $44 billion in XRP being burned. At today’s price of $2.56 per XRP, this could remove approximately 17.187 billion tokens from circulation.
XRP Price Could Reach $132 by 2035 in Bullish Scenario
In a bullish scenario, Gemini predicts that XRP’s market cap could reach between $3 trillion and $5 trillion within the next decade. This estimate assumes XRP benefits from massive global adoption and utility, driving demand for the token. With a reduced supply due to fee-burning, the increased demand could significantly raise the XRP price.
Gemini’s calculations suggest that XRP could trade around $132.23 by 2035, assuming about 37.813 billion XRP remain in circulation. This figure is based on the assumption that $4.4 billion worth of XRP is burned each year. As the network becomes more popular and its supply shrinks, XRP could transform into a deflationary asset, boosting its long-term appeal.
The XRP price is likely to experience significant growth if the XRPL adopts a fee-burning mechanism similar to Ethereum’s EIP-1559. Such a move could reduce the circulating supply of XRP, while increasing demand for the token. If these conditions hold true, XRP’s value could rise dramatically by 2035, making it a highly valuable asset in the cryptocurrency market.
