XRP Price Poised for a Moonshot? 21 Million XRP Supply Could Spark Epic Rally!

Could XRP's price explode if the freely traded supply shrinks to just 21 million tokens? Experts weigh in on the potential for an XRP supply shock and its impact on the market.

XRP Price Poised for a Moonshot? 21 Million XRP Supply Could Spark Epic Rally!

The XRP community is buzzing about a potential supply shock that could send prices soaring. The big question: What happens if the freely traded XRP supply dwindles to just 21 million tokens? Let's dive into the possibilities.

The 21 Million XRP Scenario: A Game Changer?

XRP community commentator Chad Steingraber recently predicted that only 21 million XRP might be available for public trading soon. This number, echoing Bitcoin's 21 million coin maximum supply, has ignited excitement. The core idea? A smaller active trading supply could dramatically inflate XRP's price.

Why a Supply Shock is Brewing

Several factors point to a potential XRP crunch. Projects like Axelar's mXRP (targeting $10 billion worth of XRP) and Flare Networks' FXRP (aiming to secure 5 billion XRP by mid-2026) are locking up significant chunks of the circulating supply. Adding fuel to the fire, XRP holdings on exchanges like Coinbase have plummeted.

Ripple holds a substantial amount of XRP in escrow, and early investors control billions more. Some analysts believe retail investors might control only 15% of the total supply. This means the amount of XRP readily available for trading might already be much smaller than people think.

Hypothetical Price Surge

Let's play a 'what if' game. If the active trading supply shrinks to 21 million XRP, and XRP's current market cap remains constant (around $172 billion), the price per XRP could theoretically skyrocket to approximately $8,190. While market cap adjustments are likely, this illustrates the potential impact of extreme scarcity.

Think about OKX exchange. When they reduced the supply of its OKB token to just 21 million tokens to mimic Bitcoin’s scarcity, the price surged 357% in two weeks!

Institutional Interest: Adding Fuel to the Fire

Institutional investors are already getting in on the XRP action. Canadian asset manager 3iQ holds 45 million XRP, and the Purpose ETF owns 29.6 million XRP. Rumors are swirling about potential spot XRP ETFs launching soon. If approved, these ETFs would directly invest in XRP, further squeezing the available supply.

Plus, companies like Trident Digital Tech and Webus International have announced plans to hold XRP as a reserve asset. This growing institutional demand, combined with a shrinking supply, could create a perfect storm for XRP price appreciation.

Final Thoughts

Will XRP hit $8,000? Probably not tomorrow. But the possibility of a supply shock, driven by ambitious projects and increasing institutional interest, makes the XRP market one to watch. Buckle up, it could be a wild ride!

Disclaimer: This is not financial advice. Do your own research before investing in crypto.