A recent analysis by crypto expert Future XRP raises an important question about the factors affecting XRP's long-term valuation. A central element is transaction speed.
Transaction Speed of XRP
According to the analyst, the XRP Ledger currently operates at 1,500 transactions per second (TPS) under normal conditions. During stress testing, this number has exceeded 3,400 TPS. In the future, it is expected that this can be scaled up to 10,000 TPS or higher with validator improvements and sidechain adjustments.
Factors Influencing Token Supply
Although XRP has a total supply of 100 billion tokens, not all will remain in active circulation. Factors such as cold storage, staking, institutional holdings, and ETFs can decrease the active circulating supply to 10 billion to 60 billion.
Impact of TPS on XRP Price
At 10,000 TPS, the XRP network could process around 315 billion transactions per year. Depending on the number of tokens actively circulating, velocity can vary. For instance, with 20 billion tokens, the velocity would be 15.8, whereas with 60 billion, it would drop to 5.26. Future XRP estimates that settling $1 quadrillion annually—with 20 billion tokens in circulation—would require a price of $3,165 per token. However, if capacity remains low and token supply stays high, the price could surge to over $21,000.
The analysis emphasizes that XRP's actual value will depend on its technical performance rather than market hype. Ignoring transaction speed may lead to unexpected price increases.
