XRP IS GOING TO VANISH! A SUPPLY SHOCK IS INEVITABLE! (THIS IS THE PROOF!)

Added: 2026-06-01

[00:00:00]XRP is eventually going to vanish. This has been a common thing that a lot of people have been talking about for a bit of time in the space. Uh essentially, they've been talking about how we're going to see XRP become so scarce that a supply shock will happen. And a lot of people are calling BS on that. Oh, it's just hype. It's clickbait. It's this.

[00:00:21]It's that. I only think that it's clickbait when there is a time threshold thrown on it. Like for an example, oh a, you know, supply shock's going to happen next month or oh, it's going to happen next week. I think that we will see a supply shock. Now, what's the time frame on that? I will say when everything like every single engine is up and running and it's starting to scale, that's when it becomes a reality because people look at the 100 billion max supply, which by the way, it's not a full 100 billion.

[00:00:55]There's 99.98 billion. It's a little close to almost 99.99 billion.

[00:01:02]But regardless, like that's what we have in circulation.

[00:01:07]Um or at least total supply. Circulation is a little bit less. It's at like almost 62 billion. But regardless, like everyone's looking at that and they're like that's in that's like a crazy number of XRP out there in the world. So a supply shock is impossible to experience and you know X Y and Z. But I look at this and you know even if we just go off of the 100 billion for an example, okay, we have about 7.4 million, you know, wallets out there. If every single one of those wallets just hold 13,500 XRP, all of the supply is gone.

[00:01:46]Now, imagine a world where we'll say 15 million wallets exist.

[00:01:55]It's significantly less. It's less than 7,000 XRP per wallet.

[00:02:02]And if that number keeps scaling and then you also think about lockups, you think about institutional DeFi, you think about the liquidity pools, like the number of circulating supply significantly drops and drops and drops.

[00:02:15]And I bring this up because like when we think about where this space is headed, we already have ETFs, the ETFs nearly locked up 1% of the total supply so far. Now, yes, people have utilized the ETFs as an example of why we will see a supply shock. We're not at the point where the ETFs are scaling so fast to the point where like we are about to see an imminent supply shock. But when you combine the ETF side of things, institutional DeFi, lockups, the escrow, potentially even treasury companies and things like that, you have pretty much multiple areas where XRP's supply is vanishing. It's getting swallowed up. And this is a very important stat or I should say a very important thing to take note of because when you have so many different avenues of the supply being targeted, it's very hard to look past the idea that a supply shock is inevitable. It will happen. And when I say a supply shock, I don't necessarily mean like, oh, XRP is going to $1,000 overnight. No, I look at it more so as like Bitcoin for example, right? Like Bitcoin back in 2021, I would assume was a supply shock. Yeah, you could say that it was just a typical bull run, but you got to remember that Bitcoin went from a sub like almost it was like around 3,200 to $68,000 and then it just continued all the way up to $127,000.

[00:03:48]You're talking about a 3,869% of a runup. And this was in the span of 2,496 days.

[00:04:00]That is pretty wild to witness.

[00:04:03]But this is because of the supply getting eaten alive, people buying it, um people locking it away in wallets.

[00:04:10]You also have treasury companies and now ETFs as well. Like the entire story here for Bitcoin is very interesting to you know watch because it's it's a very similar stat to even XRP like you look at how these supply shocks have affected value and I do believe that we will get there as well and ETFs are definitely a big factor to that because you also think about the fact that Ripple back in April put out a post regarding XRP ETFs how the institutional era has begun because we are starting to see institutional players more and more involved in the space than ever before.

[00:04:44]Like even with XRP, you have a ton of major names that have XRP exposure. And I'm talking about major names that people are aware of like Goldman Sachs, Gayscale, and even major Wall Street players. And yes, you'll start to see them selling off and things like that because of just like um overall uh shift in the market. But for the most part, like we still have major institutional players looking at XRP, holding XRP. And I think about like where the space is headed next, which is of course like institutional DeFi. And that's where we start to see custody of XRP growing, taking a large portion of the supply with it. So you now have ETFs, institutional DeFi, and also you have treasury companies that are also focused on institutional DeFi, like for an example, Evernote. So now you have multiple avenues just in that you like ballpark of just you know major supply getting eaten up. Then we think about the reserves with the accounts right and when you have an account here within the XRP ledger yes you need to have a base reserve you also have the owner reserves as well which is more XRP getting locked up than if you are looking into you know trading and things like that like it does affect the supply of XRP. Yes, it's minim like it's a very minimal amount.

[00:06:05]So, it's not going to affect it too much, but it's still another area where retail specifically is also, you know, a major driver of the supply shock. Then we also mix in this the transaction cost which is burning XRP. Now, yes, it's 10 drops of XRP. So, it's, you know, a very small amount of XRP being burned, which is why like you don't have like a crazy amount of XRP getting burned or, you know, over the years a burned. But think about it like this, right? It sometimes increases due to the higher than usual load. So, if we are starting to see mass adoption of the XRP ledger, if we're going to see a crazy amount of volume into the XRP ledger, wouldn't that mean that much larger amounts of XRP will be burned?

[00:06:55]Yes, the answer is yes, there will be.

[00:06:58]So now think about it like this. If everything checks out, we have everything play out perfectly for XRP in the sense of like we see mass adoption with tokenization and so many other, you know, avenues on top of ETFs. People are, you know, flooding in buying up a ton of ETFs. You have institutional DeFi. So institutional players are starting to custody XRP in you know um you know a custody pool or tossing them into liquidity pools for ETF for uh institutional defi use cases and then you also have retail you know holding XRP locking up XRP in reserves and things like that just to utilize the mainet. So now you have across the board so many different avenues in just this section where XRP is getting locked up, XRP is getting burned, the supply is shrinking.

[00:07:43]And then we go over to the whole idea of the scarcity. Big shout out to Bank XRP for this. But we have when you truly understand absolute scarcity, you stop thinking about selling. Ripple has been placing every piece quietly. ETF infrastructure, institutional rails, treasury plays, regulatory wins, all while retail weak hands keep shaking out. By the time this thing starts moving, the cheap bags will already be gone. And trust me, the millionaire making process is never easy. Rich guys won't let you get there without making you doubt every move first or everything first. That's exactly why most people will miss it. And yeah, like I'm watching everyone get so frustrated here. I'm more bullish and more excited than ever before around this space, especially for assets like XRP because everything is truly aligning perfectly here. Like everything that Ripple has been doing is really paying off for them. And yes, it will pay off for XRP holders as well once everything goes live. And clarity is like the main driver of that those things which we'll talk about in this video. But also, Black Swan Capitalist put out a great post regarding this as well. If XRP executes its intended role as a high-speed neutral settlement layer for global finance, the price will reflect the enormous value it unlocks. Anyone telling you otherwise is either lying or doesn't understand how scarce digital infrastructure assets work. And yeah, he is correct. Like when we think about this, right, if XRP is utilized properly, you have the transaction cost significantly increase, which means a significant amount of XRP starts to get burned.

[00:09:19]Then you also have retail FOMO because the price is going to start to go up and up and up and everyone's going to be like, "Oh, I got to get a piece of this.

[00:09:26]I got to get a piece of this." So more XRP gets swallowed up by retail just buying it on top of XRP getting burned because of the scale.

[00:09:36]But then you have institutional players, you know, tapping into XRP supply, holding XRP supply. Like there's so many big opportunities here for the the supply. itself to just completely vanish. And yes, it's not going to go completely away forever, but it will vanish off of exchanges.

[00:09:58]But going back to Bank of XRP's post about the infrastructure, yes, Ripple has been acquiring specific players like Hidden Road for an example, which by the way, yes, they are migrating po post trade activity across the XRP ledger.

[00:10:13]And this is all for institutional DeFi, which is a a big part of, you know, the big show here because 300 top institutional customers are tied back to Hidden Road. They clear about $3 trillion per year and XRP could definitely accelerate what Ripple is doing here and enhance their current solutions and technology as they state down here.

[00:10:34]But on top of that, okay, we go over to the Ripple Treasury stack back on April 1st, they just integrated digital asset capabilities, native digital asset capabilities with XRP and also RLUSD.

[00:10:49]And this one's very important because again when we think about G Treasury, G Treasury is an absolute massive piece of the Ripple puzzle. Not because of what TR like the Treasury, you know, solutions are doing, but because of this, the numbers behind it. 13,000 connected banks, 12.5 trillion dollars in payments volume. This is an insane amount of names, insane amount of numbers behind it as well, which could impact XRP in a very positive way. But that's not it. We think about on top of custody, what are big banks wanting to do? They want to tokenize on the XRP ledger because that's what Ripple is pushing. Which is why when we go over here to the XRP ledger, we're starting to see growth significantly surge across the board for the XRP ledger. And this combined with everything that we just went over, okay, Ripple plugs XRP into pretty much every single step of the way that they're doing on top of tokenization growing, you know, significantly. So now you have growth across the Ripple stack, across the tokenization stack, on top of the ETFs growing in a big way. Institutional inflators want to hold XRP. they see a lot of value behind it. They see it as a legitimate digital asset in this space.

[00:12:07]Um, then you also have retail buying XRP. Like every single one of these things that I've just gone over are going to severely impact the supply of XRP. I'm not saying that it's going to happen tomorrow or next week or even next month or even next year, but I do strongly believe that a supply shock for XRP is going to happen. It's inevitable, especially when you are looking at many big players jumping into tokenization.

[00:12:35]Just on May 18th, a report came out from Senator Chord regarding $4 trillion in terms of tokenized assets by 2028.

[00:12:43]We are less than a, you know, less than two years out from this happening because tokenization is going to very like I I look at clarity, right? Like even here we have clearer US regulation and improving resilience amid hacks are expected to draw more institutional assets on chain and support higher valuations for DeFi tokens the report added because again when we look at what's happening here yes we are going to see tokenization and tokenized assets scale significantly once clarity happens. So four trillion dollars. Yeah, we could definitely see that. And it's going to be on public blockchains. By the way, standard chartered, major supporter of Ripple and XRP. I could see XRP having at least, you know, uh I I would say like at least 1% of that, right? So like, you know, that could be, you know, $40 billion right there. I mean, we're at a 4 point, you know, roughly like a $4 billion, you know, area already for tokenized value. So, you know, scale that by 10x. I could easily see that happening by 2028, but who knows? It could be 10%. It could be more than that. We don't know what it's going to look like by 2028. But that's the exciting part about this. And also, by 2033, Ripple stating $19 trillion. And I do think that a lot of this will be driven by Ripple's custody stack along with tokenization stack within the XRP ledger. So, think about it like this, okay? Say for so XRP has a trillion dollars tied back to it in terms of tokenized value.

[00:14:24]That value is not going to just sit there. It's going to be moved. Like right now, we're not seeing a lot of movement from, you know, RWAs.

[00:14:32]But that's to be expected, especially in an unregulated environment. But imagine a trillion dollars on the XRP ledger being traded, swapped, locked into institutional DeFi portals and things like that. like all of a sudden you could start to see a much bigger picture where that's creating a network effect all on its own. But then you also have payment use cases.

[00:14:55]You also have it being utilized as a bridge currency between stable coin initiatives. Then you also have the ETFs. Like this is why I say every single step of the way you are seeing more and more of a clear picture on just how scarce XRP's 100 billion max supply.

[00:15:12]I'll go off of the max supply say for so there was no XRP burned the 100 billion alone there's not enough XRP there's simply not enough XRP over time especially as this space becomes more and more adopted yes XRP supply is going to vanish it's going to vanish quickly and it's going to happen when people are you know most likely selling jumping out and over time they're going to come back and they're going to say I made a huge mistake bank XRP is 100% correct here like so So many people are going to miss it because they are getting upset, frustrated, impatient, you name it. So with that being said, I hope that you guys enjoyed this video. If you guys definitely like, subscribe notifications on more free content. You guys are more follow me on Twitter and join the free Discord below.

[00:15:56]And with that being said, guys, Nick, thanks for watching. Peace out, guys.