XRP’s Deflationary Engine: How 1,500 TPS Could Burn 1 Million XRP in 11 Minutes

A recent community analysis has sparked significant discussion around the XRP Ledger's (XRPL) built-in deflationary mechanism, projecting that at a sustained throughput of 1,500 transactions per second, the network could burn 1 million XRP tokens in just 11 minutes. This insight, shared by analyst Andy, emerged from discourse following market commentary by Digital Ascension Group CEO Jake Claver. While this calculation presents a theoretical maximum under peak load, it powerfully illustrates the tokenomics designed into XRPL's fee structure, where a tiny fraction of XRP is destroyed with every transaction. This permanent removal from supply creates a counterbalance to new token issuance or releases from escrow, applying gentle deflationary pressure as network usage grows. For long-term investors, this mechanism is a fundamental bullish thesis: increasing adoption and transaction volume directly and permanently reduce the available supply, potentially enhancing scarcity over time. The analysis arrives at a pivotal moment for XRP, as developments in payments, decentralized finance (DeFi), and central bank digital currency (CBDC) integrations on the ledger could drive real-world transaction volumes toward these theoretical levels. While current daily volumes are far lower, the projection frames a future where utility, not speculation, becomes the primary driver of value. As of early 2026, the focus on such tokenomic fundamentals signals a maturing market that increasingly values sustainable economic models within blockchain ecosystems. The potential for XRP to transition into a genuinely deflationary asset through pure utility presents a compelling case for its role in the future of finance.

XRPL's 1M XRP Burn Rate at 1,500 TPS: A Community Analysis

The XRP Ledger could incinerate 1 million XRP tokens in approximately 11 minutes if it sustained a throughput of 1,500 transactions per second, according to community analyst Andy. This projection emerged during discussions about Digital Ascension Group CEO Jake Claver's recent market commentary.

Such burn rates highlight the deflationary mechanics embedded in blockchain transaction fees, though XRPL's actual daily volume remains far below this hypothetical scenario. The assessment underscores how transaction volume directly impacts token supply economics in proof-of-burn systems.

XRP Breaks 90-Day Resistance: What This Means for Price Recovery

XRP has shattered a 90-day resistance level that had been constraining its price movement since October 2025, marking a potential turning point for the cryptocurrency. The breakout was confirmed on January 2, 2026, with a 6.71% intraday gain, propelling XRP to a 9.06% increase since the start of the year. Analysts, including Waters Above, have validated the breach of the descending trendline resistance, while Chart Nerd observed the formation of higher lows within a descending channel—a technical pattern often preceding bullish reversals.

The asset's struggle throughout the fourth quarter of 2025, exacerbated by the October 10 market crash, saw it plummet from $3.1 to lower support levels. Previous attempts to overcome resistance in November and December faltered as bullish momentum waned. This latest breakout, however, suggests a possible shift in market sentiment, with traders eyeing the next key levels for confirmation of a sustained recovery.

Expert Predicts XRP Could Become Inaccessible to Majority of Investors

Edoardo Farina, founder of Alpha Lions Academy, warns that XRP may soon become unattainable for 99% of the global population. His forecast hinges on three converging factors: worsening macroeconomic conditions, growing institutional dominance in crypto markets, and technological barriers to entry.

The analysis suggests a future where digital asset ownership becomes increasingly stratified. "We're approaching an inflection point," Farina implies, "where crypto transitions from speculative asset to institutional reserve currency." This shift could price out retail investors as market dynamics favor large-scale capital deployment.

Analyst Predicts XRP Price Surge Citing Franklin Templeton Report

Cryptocurrency researcher SMQKE has projected a dramatic rise in XRP's value, drawing insights from a July 2025 Franklin Templeton report authored by Sandy Kaul, Head of Innovation at the firm. The report, titled 'Revolution, Not Evolution: The Crypto Dilemma,' argues that blockchain networks now possess intrinsic value capture mechanisms—unlike early internet protocols—with XRP positioned as a critical asset in Ripple's global value transfer system.

SMQKE emphasized XRP's unique role as a native financial instrument within its network, comparing it to foundational internet protocols but with monetization capabilities. This perspective challenges traditional valuation models for digital assets, suggesting institutional recognition could drive XRP to unprecedented price levels.

How High Could XRP Price Go If ETFs Hit $5 Billion in 2026?

XRP exchange-traded funds are emerging as a pivotal force in shaping the token's trajectory. With over $1 billion in inflows within two months, these ETFs have already locked up 746 million XRP—equivalent to 1% of circulating supply. Market demand remains robust, evidenced by just one day of net outflows since launch.

Analysts project $5 billion in XRP ETF assets by mid-2026, potentially removing 2.6 billion tokens from active circulation. This supply crunch coincides with exchange balances plummeting 58% in 2025, signaling long-term accumulation rather than speculative trading. Such structural shifts typically alleviate sell pressure and create upward price momentum.

Despite strong institutional interest, XRP underperformed in late 2025, struggling to reclaim the $2 threshold. Recent price action shows tentative strength, with the token stabilizing above critical support at $1.88. Market participants now watch whether this level holds as a foundation for renewed bullish momentum.

XRP Faces Pivotal Moment Amid Descending Channel Struggle

XRP enters 2026 trapped in a bearish technical pattern after closing its first negative year since 2022. The digital asset now teeters between breakout potential and continued decline, with analysts divided on its next major move.

The token's October 2025 rejection at the $2.70-$2.75 resistance zone proved decisive, triggering a 11.5% annual decline that erased its mid-year gains. Market technicians note the formation of lower highs throughout Q4 2025 confirmed the downtrend, with the asset establishing clear resistance levels at each failed recovery attempt.

Early 2026 brought a glimmer of hope as XRP rallied 10% to reclaim the $2 level. Bulls now eye a decisive break above $2.10 that could setup a retest of the critical $2.75 ceiling - the same level that catalyzed last year's downturn.