**Retail Investors in Focus as Ripple Proposes $1B XRP Buyback**
An XRP community pundit recently estimated how much buy pressure would be needed to clear out the leftover retail XRP holdings. The topic of an XRP supply shock has resurfaced within the community amid Ripple’s latest proposals.
For context, Bloomberg reported last week that Ripple was looking to raise $1 billion for the establishment of an XRP treasury, with plans to leverage some of the XRP tokens held in its escrow. Expectedly, this report triggered excitement among XRP proponents, leading to several speculative discussions — with the supply shock theory taking center stage.
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### RP Price Surge Could Clear Out Retail Investors
Notably, several XRP community pundits have suggested that as institutional investors enter the XRP market following increased regulatory clarity, retail investors have been offloading their tokens to these institutions. As a result, retail holdings have drastically reduced.
Alpha Lions Academy founder Edoardo Farina even insisted that retail investors are gradually being priced out of the market.
Meanwhile, a community expert who goes by the name XRP Liquidity has been tracking retail holdings closely. He estimates that retail investors currently hold approximately 500 million to 1.9 billion XRP tokens.
Building on discussions about the potential exhaustion of retail supply, XRP Liquidity noted that Ripple’s proposed $1 billion buyback would not be enough to completely clear out retail investors.
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### How Much Would It Take to Clear Out XRP Retail Investors?
At the current XRP price of $2.43, it would take around $1.2 billion to clear out retail investors if they hold 500 million XRP. If retail holdings are closer to 1.9 billion tokens, it would require about $4.617 billion to clear the market.
However, clearing retail investors is not as straightforward as simply buying tokens at the current price because not all retail investors would sell immediately at $2.43. Instead, many might wait for higher prices to take profits.
The expert estimated the potential buy pressure Ripple and other institutions would need to apply at different price levels:
– At **$5**, $1 billion would purchase 200 million XRP tokens.
– At **$7.50**, $1 billion would buy approximately 133.33 million XRP.
– At **$10**, $1 billion would buy 100 million XRP.
– At **$15**, $1 billion would secure around 66.6 million XRP.
– At **$20**, $1 billion would acquire 50 million XRP.
Institutional buyers like Ripple would therefore need to spend approximately $5 billion to purchase 550 million XRP from retail holders, assuming retail investors sell across the $5 to $20 price range.
If retail holdings stand at 1.9 billion XRP, the buyout cost could climb to an estimated $17.7 billion to fully clear out retail supply — but this only applies if all retail investors decide to sell.
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### What Happens After Retail Investors Exit?
According to community commentator Baba Cugs, once institutional buyouts have cleared retail investors, XRP’s price could see “one giant leap” overnight.
Similarly, XRP Liquidity previously projected that institutions could push the XRP price up to $20 as a strategy to entice retail investors to sell.
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### Disclaimer
This content is for informational purposes only and should not be considered financial advice. The views expressed in this article are the author’s personal opinions and do not reflect those of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses incurred.
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**About the Author:**
*Sam Wisdom Raphael*
Sam Wisdom Raphael is a seasoned crypto news writer and journalist with five years of experience covering blockchain, DeFi, and cryptocurrency developments. Sam’s active presence in the crypto community complements his deep understanding of the space, enabling him to craft clear price analysis reports and explain complex blockchain concepts.
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