6 hour ago
1 0
XRP Supply Shock Disputed as Exchange Balances Exceed 16 Billion
An ongoing discussion about a potential "XRP supply shock" is circulating, with claims that exchange-traded funds (ETFs) are rapidly depleting XRP supplies. This narrative has been challenged by an XRP Ledger dUNL validator who argued that the current market data does not support this claim.
- Some reports suggest that only 1.5 billion XRP remain on exchanges, with ETFs absorbing supply quickly. However, counterarguments highlight that exchange balances are closer to 16 billion XRP.
- The concept of a supply shock is viewed as a static interpretation of a dynamic market, with exchange balances and liquidity rapidly changing based on price and incentives.
- Concerns over wallet labeling accuracy were raised, suggesting published numbers might underestimate actual holdings.
- Despite large reported balances, some argue that effective float could tighten due to custody structures and institutional accumulation.
- The debate centers around whether XRP liquidity is genuinely at risk of a shock without a significant immediate demand increase.
Currently, XRP is trading at $1.8982.
