Crypto analyst Steph points out that the overall XRP supply is shrinking significantly while demand for the token remains high.
Steph cited data from the analysis platform CryptoQuant. The chart he shared showed that XRP’s maximum supply of 100 billion has declined sharply in recent years. In contrast to the decline in available supply, the price of XRP is on a strong uptrend.
Accordingly, Steph indicated that demand for XRP is surging. He claimed that XRP’s next price move could be explosive and that it is only a matter of time before such an explosion occurs.
Notably, XRP has been in a bearish trend for the past three weeks, and this analyst used the token’s declining supply as a basis to make the case for a major bullish rally.
Is the XRP supply really shrinking?
However, it is important to note that while the shared chart depicted a strong bearish pattern in XRP’s overall supply, the actual numbers tell a slightly different story.
Notably, of the 100 billion XRP, only 13,275,691 XRP or 13.27 million tokens were destroyed and permanently withdrawn from circulation. As a resultThe total supply of XRP still stands at a staggering 99.986 billion tokens.
This significant volume contradicts the narrative that supply is rapidly shrinking and casts doubt on the expectation of an imminent large price increase based solely on supply constraints.
XRP supply on exchanges compared to other tokens
Additionally, the XRP reserve on centralized exchanges has remained largely the same in 2024, without witnessing a sharp decline like other crypto assets.
In particular the…
