A crypto analyst discussed the often misunderstood supply of XRP and its impact on the market.
Limited Liquid Supply of XRP
The analyst emphasized that while many believe there are one hundred billion XRP available in circulation, the actual liquid supply is significantly lower. According to them, the real number of XRP available for purchase ranges between 1.5 and 3.5 billion tokens.
Impact of ETFs on XRP Price
The analyst further explained the potential influence of upcoming XRP-related ETFs. These products, offered by large financial institutions, would allow investors to gain exposure to XRP through traditional stock markets. Each ETF share could represent multiple units of XRP, thereby creating additional demand and price pressure on the token.
Corporate Interest in XRP
In addition to ETFs, potential demand from banks, treasury firms, and other institutions could also lead to increased interest in XRP. The analyst noted that if numerous organizations sought to acquire XRP simultaneously, the available supply might not be sufficient to meet this demand.
In conclusion, the analyst highlighted that the combination of a limited accessible supply of XRP and new sources of demand could have significant impacts on the token's price movements in the future.
