XRP is about to face supply shortages and its impact on price fluctuations

Recently, multiple experts have warned that XRP may soon experience a situation of market supply tension, which could significantly affect its price fluctuations.

- The available inventory of XRP on multiple exchanges has significantly decreased, with many XRP being withdrawn to personal wallets or cold storage.

- The actual circulating XRP is far below the total of 10 billion, as many XRP are locked or held for the long term.

- Demand from institutions (such as ETFs or investment funds) may lead to an even tighter supply of tradable XRP.

Impact on price:

- Price may rise rapidly: When demand exceeds supply, the price of XRP could increase significantly.

- Increased volatility: With limited supply, even small-scale trades could trigger drastic price fluctuations.

- Institutional/whale impact more evident: The actions of large investors can significantly affect market prices.

Long-term upward potential: If demand continues to grow and supply remains tight, XRP may maintain a long-term upward trend.