XRP Short Squeeze: Analyst Reveals Available Trading Supply Could Fall To Bitcoin’s 21 Million
The post XRP Short Squeeze: Analyst Reveals Available Trading Supply Could Fall To Bitcoin’s 21 Million appeared on BitcoinEthereumNews.com.
Ripple’s XRP might be trending towards a short squeeze as new analysis suggested its available trading supply could shrink to levels comparable to Bitcoin’s 21 million cap. XRP commentator Chad Steingraber, in a post on social media platform X, argued that the amount of the altcoin actually available for retail trading is going to be a fraction of its total supply. His comments came in response to discussions about the role of institutional and network-led lockups, with projects such as Axelar and Flare Networks working to secure billions of XRP tokens. XRP Might Be Gearing Up For Short Squeeze The discussion began after a popular crypto commentator posted about Axelar’s plan to lock up $10 billion worth of XRP, a move that would remove around 5% of the token available to retail traders. Similarly, Flare Networks has set a goal of locking up 5 billion XRP. These two initiatives alone would place significant pressure on the pool of XRP available for active trading. Steingraber noted that XRP’s active trading supply is what ultimately influences market pricing, not the total supply figure often cited. As such, he suggested that such accumulation by these companies, combined with other supply constraints, could reduce the number of the token available for public trading. Particularly, Steingraber predicted that this number could fall drastically to as low as 21 million XRP, an amount symbolically identical to Bitcoin’s hard cap. The possibility of only 21 million XRP being available for trading from its current circulating supply of 59 billion tokens is very ambitious. However, the scenario of this drastic fall becomes possible if Spot XRP ETFs are approved in the United States. Institutional ETFs would demand a steady supply of XRP for custody, and this would create large-scale accumulation that could permanently restrict availability on exchanges. In…
Filed under: News - @ September 29, 2025 11:26 pm