Researcher States Major Reason XRP Price May Keep Seeing Notable Rally

XRP’s price has remained relatively stable in recent weeks, but recent discussions in the crypto community suggest that its deflationary supply model could play a key role in driving future value appreciation. A well-known XRP researcher who goes by the name “SMQKE” recently brought renewed attention to the token’s economic structure. In a social media post , SMQKE emphasized that XRP has a declining supply due to a built-in burn mechanism that reduces the total number of tokens over time. This characteristic, he argued, contributes to the asset’s scarcity and could influence its price trajectory as adoption increases. XRP = Deflationary Which means: “…XRP token cannot be mined and its quantity will constantly decrease, and everything that exists in a limited amount and is actively used is becoming more expensive, therefore, with the growth of the network, the XRP price will increase… pic.twitter.com/CsJj6UK6e1 — SMQKE (@SMQKEDQG) May 26, 2025 Built-In Deflationary Structure Unlike other cryptocurrencies that rely on mining or adopt inflationary token issuance models, XRP’s entire supply was generated at the outset, capped at 100 billion units. Each time a transaction occurs on the XRP Ledger , a small amount of XRP, typically 0.00001 units, is permanently removed from circulation. This design aims to prevent spam on the network but also introduces a natural deflationary element. According to official data, over 13.9 million XRP tokens have been destroyed through this process since the network launched. These tokens are not reallocated or recovered, making their removal permanent. XRP Ledger documentation and third-party research funded by Ripple confirm that no mechanisms exist to replace burned tokens or inflate the supply. At present, XRP’s total supply stands at approximately 99.98 billion, indicating only a modest reduction since inception. While critics argue that the burn rate is too slow to significantly impact market dynamics, proponents contend that increased transaction volume over time could make this supply contraction more meaningful, especially as global adoption grows. Broader Utility and Technical Advantages Beyond tokenomics, XRP offers features that support its utility in global payment systems. The XRP Ledger facilitates fast, low-cost transfers across a variety of asset classes, including fiat currencies, digital tokens, commodities, and securities. Transactions typically settle within five seconds, and average transaction fees remain a fraction of a cent, making XRP one of the most efficient options for value transfer. This performance gives XRP an advantage over legacy systems such as SWIFT , which can take several days and charge significant fees for international transfers. We are on twitter, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) July 15, 2023 Interoperability and Cross-Border Use Cases XRP’s capacity to interact across multiple blockchain ecosystems also strengthens its value proposition. Integrations with interoperability protocols like Axelar allow XRP to function within a broader web of digital assets, expanding its reach and enhancing liquidity. This cross-chain compatibility is considered a strategic advantage in the landscape of decentralized finance. Market analysts have noted that these interoperability capabilities, combined with XRP’s cost-efficiency and decentralization, make it competitive with stablecoins like USDC and upcoming central bank digital currencies (CBDCs), many of which are limited in scope and functionality. XRP’s long-term prospects appear increasingly favorable to some observers. As institutional interest grows and the number of transactions increases, the deflationary mechanism may begin to exert greater influence on supply dynamics. In theory, a continued rise in usage without an increase in supply could result in upward price pressure. Currently, the asset is valued at $2.33 , reflecting a slight increase of 0.12% over the past 24 hours. Despite short-term price fluctuations, supporters believe that the underlying fundamentals, including deflationary supply, expanding use cases, and cross-chain capabilities, position the token for significant growth over time. Disclaimer : This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses. Follow us on Twitter , Facebook , Telegram , and Google News The post Researcher States Major Reason XRP Price May Keep Seeing Notable Rally appeared first on Times Tabloid .

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