Altcoins News

Story: Analyst Explores XRP Supply Shock Theory and Market Impact

By Julie Binoche

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What the Numbers Really Say. The analysis began with a basic but crucial step: looking at the numbers.

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The Effective Float Is Smaller. The key idea emerging from the analysis is the concept of effective circulating supply—the amount…

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Why a Supply Shock Could Happen. Cheeky Crypto argues that the conditions for an XRP supply shock could materialize if demand…

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The Tokenization Factor. The most compelling driver of potential demand, according to Cheeky Crypto, is tokenization.

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Market Sentiment Shifts. The analysis also touches on how narratives around XRP have changed.

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Risks and Uncertainties. Despite the compelling narrative, Cheeky Crypto is careful to stress the risks.

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The Bottom Line. The claim that XRP’s supply could disappear overnight is misleading on its face.

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XRP has long faced debates over its massive supply and what that means for its long-term price potential.

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Cheeky Crypto, a well-followed commentator with more than 200,000 YouTube subscribers, explored the claim in a recent video.

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The analysis began with a basic but crucial step: looking at the numbers. According to CoinMarketCap, XRP’s circulating supply stands at about 59.6 billion coins.

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This discrepancy underscores a key point. Different platforms use different methods to calculate what counts as “circulating.

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Ripple itself still holds around 35.3 billion XRP in escrow. These tokens are locked across multiple wallets and released on a schedule of up to 1 billion per month.

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As Cheeky Crypto emphasized, “for all intents and purposes, that escrow stash is effectively off of the market.”

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The key idea emerging from the analysis is the concept of effective circulating supply—the amount of XRP that is actually liquid and available for trading on exchanges.

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Beyond Ripple’s escrow, large holders such as banks, fintech firms, and long-term investors may sit on significant amounts of XRP without selling them into the market.

The Currency Analytics

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