There Is No XRP Supply Shock, But Here's Why One Is Coming

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Crypto commentator Mason Versluis has pushed back on claims that XRP is already experiencing a supply shock. After further research, he argues the current market does not support that conclusion. Liquidity remains available, and circulation has not tightened.

However, Versluis points to structural factors that could change supply behavior over time, especially as price rises and capital concentration increases.

No Supply Shock at Present

Versluis states clearly that no supply shock exists today. XRP continues to trade with deep liquidity across major venues. Large transactions are still clearing without visible stress. While the circulating supply remains accessible, recent data shows that it has decreased.

Claims of an active supply shock suggest urgency and imbalance. Versluis avoids that language. Instead, he focuses on market structure. He examines how capital interacts with supply at different price levels rather than predicting immediate disruption.

Value Concentration as Price Rises

The image attached to Versluis’ post illustrates his core point. At lower prices, large sums of capital require large quantities of tokens. As the price rises, that requirement falls sharply. $100 million at $2 requires 50 million tokens. At $10, it requires 10 million tokens. At $100, it requires 1 million tokens.

Versluis summarized this idea, writing “LESS SUPPLY is needed to hold higher values.” Capital does not scale linearly with token demand as prices increase. This dynamic changes how markets absorb inflows over time.

Why This Matters for XRP

XRP’s total supply often dominates discussions around valuation. Versluis shifts the focus toward marginal supply. As prices climb, fewer tokens need to move to support the same dollar value. That reduces visible selling pressure at higher levels, even if total supply remains unchanged.

This does not guarantee a supply shock, but outlines a condition where one could form. If demand increases while long-term holders reduce active selling, available supply tightens at the margin. The price then reacts more quickly to capital inflows than it did at lower levels.

What’s Next for XRP?

Versluis avoids predictions and timelines. Instead, he presents a framework grounded in numbers. The chart extends the logic to extreme prices, including $589 and $10,000, to show how dramatically token requirements compress.

While XRP does not face a supply shock today, the mechanics that could create one depend on price appreciation, holder behavior, and sustained demand.

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