XRP May Experience Supply Shock, Analyst Points to New Use Cases
The increasing use of XRP as collateral in blockchain-based financial services could limit the number of tokens available on the market, according to analyst Zach Rector. The development of the XRP Ledger (XRPL) infrastructure may lead individual and institutional investors to use Ripple as collateral for loans and new financial services. Rector notes that such solutions could result in the temporary locking of a portion of XRP's supply, referred to as a "supply shock." The situation may change in the second half of 2026 with the development of new tools and services. If this model is implemented on a larger scale, some XRP holders could lock their tokens as collateral, which would reduce the number of coins in circulation. Rector also points to Ripple's investments in British companies ZILO and Licuido, which are developing regulated asset tokenization solutions and technologies for investment funds. The development of these services could enhance the significance of the XRP Ledger in the tokenization of traditional financial assets. The analyst emphasizes that using XRP as collateral in financial services may lead to the temporary exclusion of part of the supply from circulation, which, with sustained demand, will impact the market situation. Whether XRP will begin to play a larger role as a collateral asset depends on the development of the XRPL infrastructure and institutional interest.
-- Price
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