Amidst ongoing price performance concerns for many market participants, crypto commentator Zach Rector has shifted focus to a different set of metrics that he believes warrant closer examination.
In a recent post accompanied by a short video, Rector argued that substantial and increasing amounts of XRP are being placed into vault structures through exchange-traded products, digital asset treasury companies, and decentralized finance protocols. His commentary emphasized evolving XRP supply dynamics rather than short-term market movements.
Rector began by acknowledging the apparent divergence between price action and structural developments. He noted that despite XRP’s price remaining under pressure, the quantity of XRP held in vault arrangements tied to ETF-related products has continued to grow.
According to his figures, over 800 million XRP have already been vaulted in connection with XRP ETFs, a volume he stated is rapidly approaching one percent of the total XRP supply. He highlighted that this trend has progressed independently of recent market volatility.
Billions of XRP about to be locked up in vaults for ETFs, DATs & DeFi pic.twitter.com/UY7ZEUgAGV
— Zach Rector (@ZachRector7) January 16, 2026
Projected Growth Across ETFs, DATs, and DeFi
Elaborating on the data, Rector suggested that the current figures represent an early phase of a broader trend. He projected that this process will continue through 2026, with potentially billions of XRP being allocated across ETFs, digital asset treasury companies, and XRP-focused DeFi applications.
While cautioning against prematurely anticipating an immediate supply shock, he asserted that a forward-looking perspective supports the notion that circulating supply may become tighter over time as these mechanisms expand.
Rector pointed out that when these various vaulting methods are considered collectively, the available circulating XRP might be lower than commonly perceived. His argument is based on aggregation, proposing that the cumulative effect of ETFs, institutional treasury strategies, and DeFi participation could significantly alter perceptions of supply availability.
Debate Over the Use of "Locked Up" Terminology
The terminology employed in Rector’s commentary drew a response from at least one observer. An X user, CryptoBiff, challenged the repeated use of the phrase "locked up," arguing that XRP held in ETFs can be sold just as readily as it can be purchased. The commenter suggested that such phrasing could be misleading, even while acknowledging that Rector’s broader analytical points might still be valid.
We are on X, follow us to connect with us :- @TimesTabloid1
— TimesTabloid (@TimesTabloid1) June 15, 2025
This exchange underscored a recurring discussion within digital asset markets concerning how vaulting, custody, and liquidity should be described. While Rector characterized these developments as reducing effective circulation, critics emphasized that financial products do not permanently remove assets from the market in the same way as irreversible mechanisms.
Focus Shifts Toward Supply Visibility
Despite differing perspectives on terminology, Rector’s core assertion remained consistent. He advocated for attention to be directed not solely towards price movements, but also towards monitoring how XRP is allocated across emerging financial structures.
In his view, understanding the location and utilization of XRP is likely to become increasingly relevant as institutional products and on-chain systems continue to expand.