Analysts suggest this trend may lead to significant supply shortages. Aduino Fina from Alpha Lions Academy expresses concern that the diminishing supply could make XRP difficult for both retail and institutional investors to obtain in the near future. The situation is compounded by the fact that many investors have withdrawn their XRP to secure private storage rather than keeping it on exchanges.
Moreover, the anticipated approval of XRP ETFs by 2025 may exacerbate this situation. If approved, institutional demand for XRP is expected to surge, further straining the available supply on exchanges. Currently, XRP is priced at around $2.14, a drop of 9% over the past week, resting at a market cap of $125 billion.
Experts advise that with the ongoing supply shifts and potential regulatory developments on the horizon, this could be an opportune moment for investors to consider acquiring XRP. Cheeky Crypto urges investors to put in only what they can afford to lose while keeping in mind that significant market shifts typically require time to evolve. Should Ripple establish new partnerships with banks in Asia and the Middle East, this could also enhance XRP's price and utility going forward.