A crypto pundit has highlighted how the XRP circulating supply is becoming increasingly scarce. With large chunks of tokens locked in various channels and restricted from active circulation, the analyst argues that the market may be preparing for a serious supply shock.
Analyst Claims XRP‘s Supply Is Running Thin
A crypto market expert, identified as ‘24HRSCRYPTO’ on X social media, has raised concerns that many investors underestimate just how “little” XRP tokens are available for open trading. This limited number of tokens, coupled with growing institutional demand, is driving the narrative of a potential supply shock.
According to the analyst, crypto payments platform Ripple Labs currently holds 37.3 billion coins in escrow, accounting for 37.3% of the total market’s supply. An additional 3.5 billion XRP remains liquid under the control of the crypto company, representing roughly 3.5% of the supply.
Co-founders Chris Larsen and Arthur Biritto also hold sizable portions, with Larsen owning 2.3 billion tokens (2.3%) and Britto holding 1.3 billion (1.3%). Taken together, these allocations mean that nearly 44.4% of the entire market supply is already locked up and accounted for before factoring in broader institutional activity.
24HRSCRYPTO has noted that institutional interest in the altcoin is steadily rising, further tightening the market. Canada’s Purpose Exchange Traded Funds (ETFs) already hold 29.6 million XRP, valued at around $89 million at an average price of $3 per token. Similarly, 3iQ, another Canadian asset manager, controls 45 million XRP, worth approximately $137 million for $3.
Despite these digital asset firms being relatively small players compared to trillion-dollar Wall Street institutions, their holdings already represent a meaningful portion of the available supply. According to the analysis, retail investors also control approximately 15% of the total coins in circulation.
24HRSCRYPTO’s present concern lies in when large US banking giants, such as JP Morgan, Wells Fargo, or Goldman Sachs, eventually move into XRP markets. According to him, if these institutions begin accumulating, billions of coins could quickly be locked away in cold storage, potentially drying up liquidity for traders and further eroding the already limited supply.
Bullish Flag Pattern Signals Rebound To $4.3
Technical analysts are also weighing in on XRP’s price outlook, pointing to chart structures that support a potential bull rally. Captain Redbeard, a crypto expert active on X, noted that the altcoin is flashing strong bullish signals, particularly as institutional inflows from ETFs accelerate. He stated that the recently launched REX-Osprey XRPR Fund has added over $10 million in new assets, underscoring the rapid influx of capital into XRP-linked products.
Examining his chart, the analyst noted that XRP has broken out of a consolidation wedge after a sharp rally, with the price hovering near $3.40. This consolidation has formed a classic bullish flag pattern, a setup that often precedes a breakout to the upside. Building on this momentum, Captain Redbeard predicts that a measured target from the bullish flag formation points toward $4.3, marking a significant rebound from current levels.
Featured image from Adobe Stock, chart from Tradingview.com
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