Citing The Crypto Basic, two analysts, Phil Kwok and Pumpius, have explained how a real XRP supply shock could occur and potentially boost its price. They argue that DeFi systems, spot ETFs, institutional holdings, and utility layers are removing XRP from the open market, reducing its circulating supply. DeFi locks XRP in liquidity pools and staking systems, while ETFs have already purchased $906 million worth of XRP. Institutions also hold XRP for settlement and treasury purposes, and Ripple’s escrow discipline limits new supply. As more XRP is absorbed into functional systems, the available supply shrinks, potentially leading to a sharp price increase.
Analysts Explain How XRP Supply Shock Could Drive Price Up
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