🔥 Key Takeaways
- A growing XRP ETF footprint now represents $1.24 billion worth of XRP, hinting at a potential supply squeeze.
- 1.12% of XRP’s total supply may be effectively removed from circulation due to ETF holdings.
- The reduced supply could lead to upward pressure on XRP’s price in the near future.
Is 1.12% of XRP Supply Gone?
The cryptocurrency market is abuzz with speculation as the footprint of XRP ETFs continues to grow. Recent data suggests that ETFs now hold hundreds of millions of XRP, amounting to a staggering $1.24 billion. This development has fueled discussions about a potential supply squeeze that could impact the price of XRP.
With 1.12% of XRP’s total supply effectively removed from circulation due to ETF holdings, the market dynamics for the cryptocurrency are shifting. ETFs, by their nature, lock up assets, making them unavailable for trading on open markets. This reduction in available supply could create upward pressure on XRP’s price, especially if demand remains steady or increases.
Market analysts are closely monitoring the situation, as the interplay between supply and demand is a critical factor in determining price movements. The growing interest in XRP ETFs reflects broader confidence in the cryptocurrency, despite regulatory challenges and market volatility.
As ETF holdings continue to grow, the potential for a supply squeeze becomes more pronounced. Investors and traders alike are keeping a close eye on XRP’s price trajectories, anticipating possible gains driven by these market dynamics.
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