XRP Bulls Must Reconsider Their $10 Target Due to Ripple's Hidden Supply Control

Market Overview

At the time of writing, XRP trades at around $1.40, with a market value of roughly $88.5 billion. However, when considering the total supply, the valuation approaches nearly $1 trillion. The difference between circulating supply and total supply represents the value of about 36.9 billion XRP that has yet to enter the market.

Supply Control by Ripple

Ripple controls most of the difference between XRP's circulating and total supply, with a substantial amount held in escrow. This setup allows Ripple to gradually release coins over time, creating supply pressure against any price rally. As a result, every new coin that hits the market needs a buyer willing to purchase it at the current price.

Fully Diluted Value

For long-term investors, the fully diluted value better reflects what price XRP could realistically reach, accounting for the supply pressures that could affect its future price. At a price of $1.40, XRP's fully diluted value is estimated to be about $140.2 billion. This represents about 60% of Bitcoin's current market value of approximately $1.68 trillion.

Conclusion

In conclusion, XRP bulls chasing a $10 price target need to reconsider their approach due to Ripple's hidden supply control. By focusing on the fully diluted value, investors can better understand the realistic price XRP could reach, taking into account supply pressures that could affect its future price.