- Researcher SMQKE reveals XRP’s built-in deflationary and scarcity mechanism.
- ONDO warns SEC about Nasdaq’s move amid XRP supply concerns.
- XRP’s shrinking supply fuels speculation over future institutional demand.
The crypto community has turned its attention to XRP after researcher SMQKE referenced several documented sources describing it as a deflationary digital asset. According to these materials, XRP’s supply continues to decline because a small portion of the token is permanently destroyed with every transaction processed on the XRP Ledger.
This built-in reduction ensures a fixed and gradually decreasing supply, distinguishing XRP from other cryptocurrencies that can be mined or newly generated.
XRP’s technical papers specify that 0.00001 XRP is burned per transaction, and the destroyed tokens are never collected by any entity. This process, also supported by findings from Aigubov and Magomedtagirov (2017) and Ripple’s 2020 documentation, confirms that XRP’s total quantity will consistently fall as network activity expands.
The deflationary structure reinforces long-term scarcity, a feature that has become central to XRP’s economic model.
SMQKE linked this mechanism to XRP’s market outlook, emphasizing that increased use naturally reduces supply. As the documents explain, assets that are limited and actively used tend to rise in value over time. Therefore, growing adoption and transaction volumes could strengthen XRP’s scarcity and enhance its long-term valuation potential.
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Deflationary Design and Bridge Asset Functionality
XRP was initially developed as a bridge asset to facilitate faster and cheaper transactions between different forms of money, including fiat currencies, cryptocurrencies, and tokenized assets. Its decentralized consensus protocol allows the network to validate transactions without mining, preventing inflationary growth in supply while maintaining efficiency.
This design has made XRP an attractive choice for global financial settlements, particularly for institutions seeking real-time cross-border solutions. Unlike centralized stablecoins such as USDC or state-backed CBDCs, XRP’s supply decreases with usage, introducing a scarcity element that strengthens its economic resilience.
The combination of deflationary tokenomics and practical payment utility positions XRP uniquely within the digital finance sector.
Rising Institutional Tensions Over XRP Availability
According to a viral update from crypto commentator “The Real Remi Relief,” companies such as ONDO and Nasdaq are positioning themselves strategically within the tokenization industry. ONDO, which is a utility partner of Ripple, has urged the U.S. Securities and Exchange Commission (SEC) to proceed cautiously regarding Nasdaq’s entry into the sector.
Remi Relief cited ONDO’s warning that “there’s not enough XRP to go around,” suggesting fears of a potential supply crunch. ONDO, a key participant in RWA infrastructure, appears intent on maintaining its early advantage as institutional adoption accelerates.
As XRP’s circulating supply continues to decrease and institutional demand rises, market observers believe the asset’s scarcity could play a decisive role in shaping its future within the tokenized financial ecosystem.
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