As the XRP price breaks into new territory, analysts and developers are sharing fresh insights into the forces that may drive the token’s long-term price trajectory.
According to software engineer Vincent Van Code, a self-reinforcing cycle of scarcity, demand, and utility could sustain XRP’s upward momentum.
Only 100 Billion XRP
Van Code first cited XRP’s fixed supply. Unlike fiat currencies or inflationary tokens, XRP has a hard cap of 100 billion coins, with no more ever to be created. This fixed supply provides a predictable framework for long-term valuation.
Meanwhile, over 14 million tokens have been burned from this supply through transaction fees, reducing the overall available amount.
Less Than 20 Billion in Circulation
However, according to Van Code, fewer than 20 billion XRP are actively available for use in Ripple’s On-Demand Liquidity (ODL) system and the open market. The rest are either in escrow or held by early investors and long-term holders who are not selling. This perspective emphasizes a limited volume of XRP for day-to-day liquidity.
Demand Pushes Price Up
Notably, ODL, now known as Ripple Payments, leverages XRP for cross-border settlements and continues to expand. Van Code explains that as demand for XRP increases, whether for long-term holding or near-instant liquidity, this naturally increases buy pressure.
Price Rise Increases Investor Confidence
In parallel, he noted that as XRP’s price rises, confidence in its long-term value grows as well. This leads more investors to hold (HODL) rather than sell, removing even more XRP from active supply.
HODLing Reduces Supply for ODL
The effect compounds is that as more investors hold XRP, less becomes available for ODL or for new entrants. In Van Code’s view, this creates a scarcity feedback loop, further driving prices upward.
ODL Is Indifferent to XRP’s Market Price
Meanwhile, Van Code points out that ODL is indifferent to XRP’s market price. Since institutions buy and sell XRP within seconds during transactions, they incur no significant gain or loss. Essentially, it’s immaterial whether XRP costs $0.30 or $10,000. This makes XRP highly scalable as a utility token.
In parallel, Van Code emphasizes that investors should view XRP as a tool for institutions to repeatedly generate value similar to how BlackRock uses Bitcoin in ETFs to earn management fees, not just speculate on price. In comparison, XRP offers a transactional advantage where value is created in motion, rather than in storage.
Escrow Controls: Ripple’s Version of Oil Price Strategy?
Van Code further argues that Ripple’s massive XRP escrow plays a crucial role in this dynamic. According to him, it helps prevent a supply shock that could destabilize the global market.
Building on this perspective, Brad Kimes, founder of Digital Perspectives, likened XRP’s escrow system to oil price controls. “The XRP escrow will never let it all out into the wild,” Kimes said.
🎯 The XRP escrow will never let all out into the wild.
Think of how the price of oil is controlled.
And lock in. 😎👇 https://t.co/hxq8EydXi9
— Digital Perspectives (@DigPerspectives) July 11, 2025
His comment underscores the idea that Ripple’s monthly timed releases are intended to stabilize global supply, much like how OPEC regulates oil output to prevent market collapse.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
