XRP's Price Surge Masks Underlying Supply Concerns
XRP's price has surged by 33% in August, but one expert is skeptical about its underlying value. The asset currently trades at $1.43 as of August 28, with a 30-day return of 33%. However, the writer believes that this growth is not driven by XRP's fundamental value.
The main driver behind XRP's price appreciation is the upcoming vote on the Digital Asset Market Clarity Act in September. If passed, it could benefit XRP substantially by laying down rules for financial institutions to hold and transact with crypto.
However, this has little to do with XRP's ability to generate economic value and distribute it to holders. The XRP Ledger generated $48,168 of transaction fees in Q2, but these fees are burned, and the circulating supply is expanding over time.
The writer notes that 272 million XRP entered circulation each month in the first half of 2026 due to distributions from escrow by Ripple. With a maximum supply capped at close to 100 billion XRP, the network's fee revenue would need to grow significantly to offset new supply hitting the market.