- Analysts warn XRP scarcity could intensify as DeFi activity grows.
- Flare network expansion fuels concerns of an impending XRP shortage.
- Experts link institutional adoption and token locking to supply pressure.
The XRP community received renewed attention after two known analysts stated that an XRP supply shock is becoming a real possibility. According to a video shared on X by Zach Rector, the once-dismissed narrative around XRP scarcity is beginning to take shape as decentralized finance activity gains traction on the Flare network.
In the video, Rector explained that he recently minted additional FXRP tokens, which involves locking XRP into the Flare Core Vault while issuing a synthetic version of it on the Flare network. This setup allows users to earn yield without moving their XRP off the ledger.
He noted that over five million FXRP were minted in a single day, reflecting rising participation. Flare CEO Hugo Filion has also said that the project is targeting five percent of the total XRP supply, a figure that could substantially tighten liquidity in the long term.
Also Read: Analyst Ali Martinez Warns: “XRP is About to Revisit $2” – Here’s the Trend
Growing DeFi Activity and Institutional Moves Add Pressure
In another video shared on X, crypto researcher Ripple Bull Winkle reinforced the growing belief that XRP’s available supply could shrink sharply as adoption accelerates. He pointed out that global financial systems like Swift handle around $150 trillion annually, and if even a fraction of that value transitions through the XRP Ledger, demand could rise dramatically.
He added that insiders appear aware of upcoming institutional developments, including potential ETFs and digital asset treasury products tied to XRP. These, he suggested, are preparing the ground for broader integration into financial markets.
Consequently, the combination of DeFi growth, asset tokenization, and increasing institutional interest may be setting the stage for a true XRP supply squeeze.
As discussions around yield generation and liquidity migration expand, analysts agree that the possibility of an XRP supply shock is becoming more tangible. While price forecasts vary, sentiment across the community indicates growing anticipation that scarcity could soon drive significant market shifts.
Also Read: Brad Garlinghouse on Ripple and XRP: Here’s What People Often Get Wrong
