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>>An analyst predicts a significant XRP supply reduction is on the horizon, citing a specific indicator.

An analyst predicts a significant XRP supply reduction is on the horizon, citing a specific indicator.

crypthub

1 day ago

Potential XRP Supply Scarcity

Finance expert Levi Rietveld has highlighted a potential shift in XRP's market dynamics, warning of a looming supply shock. He suggests that XRP's availability may soon decrease as institutions and large holders continue to accumulate the digital asset. This scarcity could result from a limited supply combined with increasing demand. Reduced availability for regular buyers is anticipated as ownership concentrates among fewer entities.

XRP vs. Bitcoin and Ethereum

Rietveld distinguishes XRP’s situation from Bitcoin and Ethereum, acknowledging a potential supply shock for both. He believes XRP might experience even greater scarcity due to a higher proportion of its supply already held long-term. The combination of a smaller available float and growing institutional demand could further influence XRP's market value. Trading liquidity thinning could exacerbate these effects.

Institutional Accumulation's Impact

The increasing involvement of institutions in XRP is a key observation among analysts. Rietveld's assessment supports the view that institutional accumulation often removes tokens from circulation. This behavior contributes to his belief that acquiring XRP at current price levels may become increasingly difficult. The locked holdings are considered a significant factor in XRP’s potential valuation.

Market Dynamics and Considerations

Analysts are increasingly focusing on XRP's supply structure and locked holdings. Whether a full supply shock materializes, the balance between available tokens and investor demand will likely shape XRP’s price direction. This information is intended for informational purposes and is not financial advice; readers should conduct their own research.