In accordance with 36 Crypto, XRP has entered a liquidity compression flywheel, driven by ETFs, RLUSD, and institutional custody. This process reduces XRP's available supply, tightening liquidity and potentially boosting its price. ETFs absorb XRP, lowering market float, while RLUSD and ZK infrastructure create continuous demand. Institutional custody further shrinks supply, increasing price pressure. Analyst Stern Drew notes this is a mechanical, self-reinforcing cycle with real-world utility and regulatory compliance.
Pundit: XRP Enters Liquidity Compression Flywheel, Supply Tightening and Price Impact Expected
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