Crypto analyst Crypto Sensei has expressed concerns about the availability of XRP on exchanges, suggesting that limited supply could lead to significant price increases.
Potential Impact of Sudden Demand
Crypto Sensei points out that a sudden surge of investor interest could quickly deplete available XRP on trading platforms. He estimates that with spot ETF approval potentially coming in October, a demand of $10 billion could significantly reduce supply.
Ripple's Escrow Management and Supply
The analyst also discussed how Ripple's escrow releases may affect XRP's circulating supply. Ripple unlocks 1 billion XRP each month but returns a substantial portion back to escrow. According to him, nearly every month, the company relocks $700 million, limiting the tokens available on the market.
ETF-Driven Demand Could Amplify Price Movements
Crypto Sensei emphasizes that ETF-driven demand could significantly pressure the XRP market. A swift influx of investment could quickly exhaust the limited supply on exchanges, leading to a potential supply shock and driving prices up.
Thus, the limited supply of XRP on exchanges, alongside potential demand from ETFs, may lead to significant changes in the digital asset market. Analysts are closely monitoring developments.
