XRP TPS and Annual Velocity In Price Projections: Here’s Why They Are Misunderstood

Crypto enthusiast Future XRP has published a detailed analysis explaining the often-overlooked relationship between XRP’s technical capacity and its long-term price projections. According to the post , the two most misunderstood components in forecasting XRP’s value are its transactions per second (TPS) and the token’s annual velocity. Future XRP begins by addressing the current capabilities of the XRP Ledger. Under real-world conditions, the ledger handles 1,500 TPS. However, in stress testing environments, it has achieved throughput exceeding 3,400 TPS. He argues that, with enhancements such as validator optimization or horizontal scaling through sidechains, XRP’s infrastructure could realistically scale to 10,000 TPS, or more. This is important, he explains, because TPS directly affects XRP’s annual velocity—the number of times each token is used within a year. For XRP to serve as the backbone for global settlements, velocity must become a key metric in understanding how much transactional volume the network can support, relative to its circulating supply. XRP Circulating Supply vs Total Supply While the total supply of XRP is capped at 100 billion tokens, Future XRP argues that the effective circulating supply could be far lower. He points out that a significant share of XRP is expected to remain in cold storage, be reserved in ETFs , locked in institutional agreements, or allocated for long-term staking . Depending on the scenario, the truly liquid supply could be between 10 and 60 billion XRP. He then uses these ranges to explore how velocity would shift under different TPS levels. At 10,000 TPS, XRP could handle approximately 315.36 billion transactions per year. With 20 billion XRP in circulation, that implies a velocity of 15.8. If supply is at 60 billion, the velocity is 5.26. However, if TPS remains at just 1,500, annual transaction volume drops to 47.3 billion, dramatically reducing velocity. Under this low-performance scenario with 60 billion XRP in circulation, velocity falls to only 0.79 turns. Quantifying XRP’s Role in Global Settlement The analysis then shifts to the potential value XRP might be required to settle in future financial ecosystems. According to Future XRP, the realistic annual settlement volume for XRP ranges between $500 trillion and $1 quadrillion. He clarifies that these figures are not speculative projections but rather reflect portions of established financial systems, such as cross-border payments, foreign exchange (FX) markets, tokenized securities, and derivatives. As a benchmark, he cites the SWIFT network, which processes over $5 trillion daily. Ripple, the company behind the XRP Ledger, has previously stated its goal to capture a 10–14% share of that market . When extended to include other forms of institutional and governmental settlement, Future XRP asserts that $1 quadrillion per year is a conservative long-term estimate, especially by 2030. We are on X, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) June 15, 2025 Applying the MV = PQ Formula Using the standard equation from monetary theory, MV = PQ (where M is the circulating supply, V is velocity, and Q is the total value transacted), Future XRP illustrates the relationship between XRP’s technical utility and price. Under a high-performance setup—10,000 TPS and a 20 billion circulating supply—XRP achieves 15.8 annual velocity. To settle $1 quadrillion in volume, the price per XRP would be calculated as: Price = 1,000,000,000,000,000 ÷ (20,000,000,000 × 15.8) = $3,165 per XRP. Even with a 60 billion supply, the price still aligns closely at $3,145 due to the inverse relationship between velocity and supply. However, under lower performance conditions, with TPS limited to 1,500 and a 60 billion supply, the token’s velocity falls drastically, and the model demands a far higher price of over $21,000 per XRP to settle the same volume. Conclusion Based on Mathematical Models Future XRP concludes by emphasizing that XRP’s potential valuation is a function of its practical use in global financial infrastructure. According to his analysis, hype and market sentiment are not central to understanding XRP’s trajectory. Instead, pricing models derived from real transaction throughput and supply dynamics make a strong case for a four- or five-digit valuation if XRP is to fulfill a global settlement role. His argument rests on calculations rather than conjecture, highlighting the role of TPS and velocity in determining the token’s necessity-driven price. Follow us on X , Facebook , Telegram , and Google News The post XRP TPS and Annual Velocity In Price Projections: Here’s Why They Are Misunderstood appeared first on Times Tabloid .