A quiet yet powerful shift could be underway within the XRP ecosystem as billions of tokens are steadily moving away from open trading and into systems that keep them locked for longer stretches of time. According to crypto pundit Zach Rector, network upgrades and DeFi opportunities could encourage holders to commit their XRP for the […]A quiet yet powerful shift could be underway within the XRP ecosystem as billions of tokens are steadily moving away from open trading and into systems that keep them locked for longer stretches of time. According to crypto pundit Zach Rector, network upgrades and DeFi opportunities could encourage holders to commit their XRP for the […]

Billions Of XRP Set To Be Taken Out Of Circulation – Here’s How

A quiet yet powerful shift could be underway within the XRP ecosystem as billions of tokens are steadily moving away from open trading and into systems that keep them locked for longer stretches of time. According to crypto pundit Zach Rector, network upgrades and DeFi opportunities could encourage holders to commit their XRP for the long term, thereby reducing the number of tokens available for active trading.

Zach Rector Warns Of Looming XRP “Supply Shock”

Zach Rector, a well-followed crypto commentator, has raised the alarm about what lies ahead for XRP. According to Rector, billions of tokens are on track to be locked and deployed inside decentralized finance protocols in the near future. Rector argues that massive amounts of XRP are on track to leave circulation as they get stored inside long-term blockchain systems and institutional programs.

Rector points out that liquidity is no longer moving freely across open exchanges as it once did. Trading volume that once flowed across markets is now shifting into smart contracts, secure custody accounts, and platforms that offer steady returns. Such moves reduce the number of tokens left for open trading on exchanges.

As the pool of active tokens shrinks, upward pressure on prices is likely to intensify over time. Short-term traders who focus solely on daily movements may overlook the more profound changes now underway. The Rector’s view suggests that demand is no longer the sole factor shaping XRP. Supply is shrinking step by step, setting up the possibility of a crunch that could change the market’s direction soon.

Innovations To Drive Large-Scale Token Lockups

At the core of these changes is the XRP Ledger itself, which now includes an Ethereum Virtual Machine (EVM) sidechain, opening the door to smart contracts, lending markets, and liquidity pools. These new capabilities allow holders to utilize their XRP directly on the network, making long-term token commitments more attractive.

Cross-chain bridges, such as Axelar, allow XRP to move easily between networks, facilitating the deployment of tokens into DeFi projects by institutions and large holders for extended periods. The more effortless movement of assets gives institutions and large holders a clear path to place tokens into DeFi projects for long-term use.

Exchanges and custodians are launching yield products, including wrapped tokens and staking-style services, that allow investors to earn rewards while keeping their XRP locked. The rewards make it far more tempting for holders to keep XRP out of trading circulation.

Analysts stress that even if adoption grows only at a modest pace, billions of tokens could end up sidelined. A tighter supply could result in significantly fewer tokens in circulation, leading to more intense price movements. While there are still technical and regulatory challenges to be faced, the tools for long-term XRP lockups are already available. With momentum building, the supply shock Zach Rector has warned about may arrive sooner than many expect.

XRP price chart from Tradingview.com
Market Opportunity
XRP Logo
XRP Price(XRP)
$2.1572
$2.1572$2.1572
+2.79%
USD
XRP (XRP) Live Price Chart
Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact [email protected] for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

FCA komt in 2026 met aangepaste cryptoregels voor Britse markt

FCA komt in 2026 met aangepaste cryptoregels voor Britse markt

De Britse financiële waakhond, de FCA, komt in 2026 met nieuwe regels speciaal voor crypto bedrijven. Wat direct opvalt: de toezichthouder laat enkele klassieke financiële verplichtingen los om beter aan te sluiten op de snelle en grillige wereld van digitale activa. Tegelijkertijd wordt er extra nadruk gelegd op digitale beveiliging,... Het bericht FCA komt in 2026 met aangepaste cryptoregels voor Britse markt verscheen het eerst op Blockchain Stories.
Share
Coinstats2025/09/18 00:33
Crypto Market Cap Edges Up 2% as Bitcoin Approaches $118K After Fed Rate Trim

Crypto Market Cap Edges Up 2% as Bitcoin Approaches $118K After Fed Rate Trim

The global crypto market cap rose 2% to $4.2 trillion on Thursday, lifted by Bitcoin’s steady climb toward $118,000 after the Fed delivered its first interest rate cut of the year. Gains were measured, however, as investors weighed the central bank’s cautious tone on future policy moves. Bitcoin last traded 1% higher at $117,426. Ether rose 2.8% to $4,609. XRP also gained, rising 2.9% to $3.10. Fed Chair Jerome Powell described Wednesday’s quarter-point reduction as a risk-management step, stressing that policymakers were in no hurry to speed up the easing cycle. His comments dampened expectations of more aggressive cuts, limiting enthusiasm across risk assets. Traders Anticipated Fed Rate Trim, Leaving Little Room for Surprise Rally The Federal Open Market Committee voted 11-to-1 to lower the benchmark lending rate to a range of 4.00% to 4.25%. The sole dissent came from newly appointed governor Stephen Miran, who pushed for a half-point cut. Traders were largely prepared for the move. Futures markets tracked by the CME FedWatch tool had assigned a 96% probability to a 25 basis point cut, making the decision widely anticipated. That advance positioning meant much of the potential boost was already priced in, creating what analysts described as a “buy the rumour, sell the news” environment. Fed Rate Decision Creates Conditions for Crypto, But Traders Still Hold Back Andrew Forson, president of DeFi Technologies, said lower borrowing costs would eventually steer more money toward digital assets. “A lower cost of capital indicates more capital flows into the digital assets space because the risk hurdle rate for money is lower,” he noted. He added that staking products and blockchain projects could become attractive alternatives to traditional bonds, offering both yield and appreciation. Despite the cut, crypto markets remained calm. Open interest in Bitcoin futures held steady and no major liquidation cascades followed the Fed’s decision. Analysts pointed to Powell’s language and upcoming economic data as the key factors for traders before building larger positions. Powell’s Caution Tempers Immediate Impact of Fed Rate Move on Crypto Markets History also suggests crypto rallies after rate cuts often take time. When the Fed eased in Dec. 2024, Bitcoin briefly surged 5% cent before consolidating, with sustained gains arriving only weeks later. This time, market watchers are bracing for a similar pattern. Powell’s insistence on caution, combined with uncertainty around inflation and growth, has kept short-term volatility muted even as sentiment for risk assets improves. BitMine’s Tom Lee this week predicted that Bitcoin and Ether could deliver “monster gains” in the next three months if the Fed continues on an easing path. His view echoes broader expectations that liquidity-sensitive assets will outperform once the cycle gathers pace. For now, the crypto sector has digested the Fed’s move with restraint. Traders remain focused on signals from the central bank’s October meeting to determine whether Wednesday’s step marks the beginning of a broader policy shift or just a one-off adjustment
Share
CryptoNews2025/09/18 13:14
US Senate Releases Draft Crypto Bill Establishing Clear Regulatory Framework for Digital Assets

US Senate Releases Draft Crypto Bill Establishing Clear Regulatory Framework for Digital Assets

TLDR: Bill resolves SEC-CFTC conflict by assigning clear regulatory authority over securities and commodities respectively. Ancillary assets category exempts network
Share
Blockonomi2026/01/14 04:57