In discussions about XRP’s future value, much of the focus tends to fall on its total supply of 100 billion tokens and how this supply can influence its price. However, the asset’s price dynamics are not based solely on the theoretical maximum supply but rather on the amount of XRP that is actually available for trading at any given time. Financial expert Jake Claver recently emphasized this distinction, describing how the available supply plays a greater role in shaping price action than the total supply figure. XRP’s Available Supply Claver recently explored this subject in a video posted on X, where he analyzed how XRP’s available supply could act as a lever on its market value. According to Claver, many investors misunderstand supply dynamics by only considering the full 100 billion token supply figure . He explained that supply and demand dynamics only impact the available supply, and estimated that just 2 billion XRP, possibly even less, is currently accessible on exchanges for active trading. If retail holders are included, this number might increase slightly, but he still suggested that “retail doesn’t hold more than, you know, maybe 1.2 to 2 billion total XRP.” The market cap multiplier effect for #XRP pic.twitter.com/XXr3zA6KZF — Jake Claver, QFOP (@beyond_broke) August 31, 2025 With some retail participants expected to sell at higher valuations , he projected that perhaps another billion tokens could flow onto exchanges if XRP were to trade in the $10 to $100 range. The Multiplier Effect on XRP Valuation The market cap multiplier concept reframes how XRP’s market cap should be understood. Traditional calculations assume that value is distributed across the token’s entire 100 billion supply. However, if only a small fraction is available to trade, then inflows of new capital are concentrated within that reduced pool. Claver suggested that this mismatch can make XRP appear to achieve market capitalizations that would otherwise seem unattainable. For example, if demand drives the price toward double-digit levels , the effective market cap based on circulating liquidity would expand at a much faster rate than standard models project. This is what he referred to as the 50x effect, where limited supply magnifies the impact of demand. Shifting Liquidity at Higher Price Levels Another implication of the multiplier is how liquidity might change as XRP’s price rises. Claver noted that at $10, $20, or even $100, more retail holders would likely sell, increasing the number of tokens available on exchanges. We are on X, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) June 15, 2025 This gradual release of supply could reduce the strength of the multiplier, but only once prices have already moved significantly higher. Until that point, valuation pressure falls on the restricted supply, meaning XRP could move upward more sharply than its nominal supply suggests. Disclaimer : This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses. Follow us on X , Facebook , Telegram , and Google News The post Effect of XRP Market Cap Multiplier On Its Price appeared first on Times Tabloid .
