Researcher Proves: XRP Supply Shock Will Happen Before Bitcoin

A recent post on X by crypto researcher SMQKE presents a clear claim about the timing of supply constraints between XRP and Bitcoin.

In the post, SMQKE stated that a supply shock for XRP will happen before Bitcoin reaches a similar phase. The researcher supported this position by referencing previously published material and emphasized that the claim is based on documented analysis.

SMQKE included an older statement that highlights findings from WisdomTree. The excerpt states that Bitcoin is expected to reach its maximum supply of 21 million units around the year 2140. In contrast, XRP is projected to reach its effective maximum supply within the next few years. This difference in timing forms the core of SMQKE’s argument.

Supply Structure Behind the Claim

The material shared in the post explains how XRP’s supply evolves. Transaction fees on the XRP Ledger are permanently burned, which gradually reduces the total supply. While each transaction burns only a small amount, the process continues consistently and helps reduce long-term supply.

The document also explains the role of escrow. A large portion of XRP was locked into escrow accounts with scheduled monthly releases. Any unused amount returns to escrow, which helps maintain a predictable supply flow. As these releases continue over time, the remaining escrow balance declines, moving XRP closer to a stage where fewer new units enter circulation.

The highlighted section cited by SMQKE states that both XRP and Bitcoin are scarce assets, but they follow different issuance paths. Bitcoin relies on mining and a fixed cap, while XRP depends on escrow distribution and the burn of transaction fees. According to the document, once XRP approaches its maximum supply, the burn mechanism becomes the only factor reducing supply.

Market Implications of Earlier Scarcity

In the X post, SMQKE shares an earlier XRP timeline as a key factor for investors to consider. The claim is straightforward: if XRP reaches a supply-constrained phase sooner than Bitcoin, the market could respond earlier to reduced availability.

The referenced material adds that if demand for XRP remains steady or increases, a limited supply could support price growth. This conclusion aligns with standard supply and demand dynamics. A reduction in available units, combined with consistent demand, can influence valuation.

Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.

Follow us on X, Facebook, Telegram, and  Google News

The post Researcher Proves: XRP Supply Shock Will Happen Before Bitcoin appeared first on Times Tabloid.