XRP supply is running low! Ripple Spot ETF may trigger a big pump in prices.

Ripple (XRP) is at a critical moment that could trigger a historic market rally. The latest market observations indicate that while the total issuance of XRP reaches 100 billion coins, the actual "circulating supply" available for free trading in the market may only be between 1.5 billion to 3.5 billion coins. When limited supply meets the potential launch of a Spot ETF and an influx of institutional funds, prices may experience explosive growth.

XRP supply flow is far lower than total amount

Many investors mistakenly believe that the supply of XRP in the market is abundant. In reality, a large number of tokens are locked, reserved, or long-term idle in wallets, making them unavailable for immediate market trading. Analysts point out that only a small portion of the total XRP can circulate on exchanges and in the over-the-counter market. This means that once demand surges, the existing available supply will be quickly consumed, creating strong upward pressure on prices.

Spot XRP ETF could become a demand multiplier

One of the focuses of the market is the potential issuance of a Spot XRP ETF by large financial institutions such as BlackRock and Charles Schwab. These types of funds must directly purchase and hold XRP to support each fund share, with each share possibly corresponding to multiple tokens.

As the scale of the ETF expands, fund managers need to continuously accumulate XRP, thereby becoming a multiplier of demand. In the context of limited liquid supply, this additional institutional buying will have a significant impact on the price.

Institutional adoption intensifies liquidity pressure

In addition to ETFs, banks, financial companies, and other large institutions may also incorporate XRP into their strategic reserve assets. Each new institutional buyer further compresses market liquidity, leading to a decrease in the tradable quantity on the order book. When this liquidity pressure continues to accumulate, the rate of price increase may exceed market expectations.

Liquidity Shock and FOMO Effect

In a market with limited supply and rapidly growing demand, "liquidity shocks" can easily occur—meaning prices soar rapidly due to concentrated buying pressure. When institutions and professional investors rush to buy XRP, retail investors often follow suit due to "fear of missing out" (FOMO), further amplifying price volatility. This dual push could lead XRP into a phase of high volatility and high returns.

Conclusion

The current market structure of XRP—low liquid supply, potential Spot ETF launch, and accelerated institutional adoption—collectively creates strong upward potential. If these factors ferment simultaneously, the price of XRP may experience a historic surge. However, high volatility also means that risks and opportunities coexist, and investors should closely monitor the progress of ETF approvals and on-chain fund flows, while managing risks effectively.