XRP Supply Burn Sets Stage for $100 Price Target, Analyst Claims

XRP bulls are making an aggressive case that the token will eventually trade above $100. Digital Asset Investor, a prominent crypto commentator, laid out the thesis in a video posted August 10. He argues that XRP's deflationary supply mechanics and the network's need to handle increasingly large transaction values will force the price higher over time.

The core of his argument rests on two pillars: the ongoing burn of XRP tokens through transaction fees, and what he describes as a mathematical necessity for a higher valuation if the XRP Ledger is to process the kind of institutional-scale transfers its backers envision. He claims that $100 per XRP is inevitable.

According to Digital Asset Investor, XRP's total supply has fallen from 99,985,726,061 tokens roughly 206 days ago to 99,985,630,555 today, meaning 95,506 XRP has been permanently removed from circulation over that period. This translates to an average burn rate of approximately 463 XRP per day.

He emphasizes that the relationship between price and burn rate is central to his thesis. At higher price levels, the same transaction volume in dollar terms requires fewer XRP tokens for fees, but the total value moved per transaction rises dramatically. This creates a feedback loop where higher prices enable larger transfers, which in turn justify higher prices.