Here’s Why 13% of XRP Supply Faces Potential Lockup - Could Trigger Massive Supply Shock

XRP holders brace for impact as nearly one-eighth of the entire supply faces potential lockdown.

The Mechanics Behind the Move

Market analysts spot unusual wallet activity suggesting institutional players might be preparing to remove a significant chunk of XRP from circulation. When 13% of any asset suddenly becomes unavailable, the math gets interesting fast.

Supply Shock Dynamics

Basic economics dictates that when available supply shrinks while demand holds steady, prices tend to move in one direction. The crypto market has seen this playbook before - just ask anyone who watched Bitcoin's early cycles.

Market Reactions Brewing

Traders are positioning for potential volatility spikes, while skeptics question whether this is genuine accumulation or just another coordinated narrative. Because in crypto, sometimes the 'shock' is more shocking than the supply.

If this lockup materializes, exchanges might suddenly find themselves scrambling for XRP liquidity - and we all know how traditional finance loves a good liquidity crisis that wasn't caused by their own derivatives for once.

Digital Asset Investor (DAI), an XRP community figure, believes XRP could face a major supply crunch soon amid the ambitions from mXRP and FXRP. Notably, his warning came on the back of the launch of mXRP, a yield-bearing project from Axelar Network.

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