A recent analysis by developer Vincent Van Code sheds light on misconceptions surrounding the available amount of XRP for business transactions, touching upon various factors influencing token liquidity.
Ripple’s Escrow Holdings
Van Code highlights that the portion of XRP under Ripple's escrow management amounts to about 40 billion tokens. Despite regular releases of these tokens, most are typically returned to escrow, rendering them less suitable for operational use in business.
Lost XRP and Dormant Wallets
According to Van Code, between 5 and 8 billion XRP may be permanently inaccessible due to forgotten private keys, abandoned wallets, or early user inaccessibility. While these tokens are not officially removed from circulation, they no longer play an active role in the XRP economy.
Estimate of Available XRP and Market
Van Code concludes that only around 12 to 15 billion XRP is realistically available for open market use. He emphasizes that considering the rising demand and various factors limiting supply, the available volume might be insufficient to meet producers' and consumers’ needs.
Van Code's analysis presents a crucial understanding of XRP's supply dynamics. This information may influence various groups, including investors and businesses, considering its use in the digital economy.
