Hidden Ripple Supply Squeeze Exposed: Next XRP Price Surge Seems Close

Ripple (XRP) investors might have spent months watching the charts and wondering when the long-awaited pump would finally show up. Predictions keep circulating, yet the market keeps drifting. The asset climbed to an all-time high of $3.66 this year, although it now trades more than 40% below that peak. XRP has moved through phases shaped by promising catalysts, tough setbacks, and surprising strength.

A new angle was addressed by TheCryptoBasic page on X when they referenced an analyst who unpacked a concept many holders mention but rarely grasp fully: the real XRP supply squeeze.

The idea sounds simple on the surface, and the reality is far more layered. TheCryptoBasic mentioned insights from EasyA co-founder Phil Kwok and Bitcoin veteran Pumpius, both explaining how a supply shock forms long before any visible price movement shows up on a chart. Their explanations point toward a slow but powerful structural shift that could reshape liquidity across XRP markets.

XRP Price Pressure Begins With a Shrinking Market Supply

Phil Kwok’s perspective, shared through TheCryptoBasic’s coverage, focuses on XRP tokens leaving the open market. He explains that supply shocks do not start when prices rise. They begin when XRP quietly stops circulating. DeFi plays a central role in this. Liquidity pools, lending platforms, collateral frameworks, and staking structures lock XRP inside systems that are not designed to return tokens quickly to exchanges.

This shift transforms XRP from a freely traded asset to a utility resource fueling smart contracts and settlement layers. XRP becomes tied into operational systems instead of speculative trading. Kwok stresses that XRPL-based DeFi is still early, yet it has already started absorbing tokens at a steady pace. These early signs create the foundation for the supply squeeze forming beneath the XRP price.

The discussion shows why DeFi layers matter. They are not short-term hype cycles. They are long-term infrastructure that steadily thins out exchange liquidity.

Ripple Price Dynamics and How ETFs Accelerate the Squeeze

Pumpius expands the argument by examining real-world mechanisms that drain circulating XRP. TheCryptoBasic analyzed his explanation that XRP spot ETFs do not use synthetic exposure. All ETFs must buy actual XRP tokens from the open market. As inflows continue, ETFs steadily remove inventory from exchanges.

XRP ETFs have already purchased $906 million worth of tokens, following inflows above $850 million this week. This equals nearly 500 million XRP taken out of public circulation. That scale of absorption cannot be ignored by Ripple token watchers, especially when the net new supply entering markets remains controlled through Ripple’s escrow schedule.

Pumpius adds that banks, asset managers, custodians, and settlement providers treat XRP as long-term operational capital. These institutions place XRP into corporate workflows or cold storage rather than using it for active trading. Once positioned there, tokens rarely re-enter public order books.

Ripple’s escrow discipline also reinforces a controlled environment. Unused tokens return to escrow, reducing the amount of fresh supply that could dilute liquidity. This stable release rhythm supports the possibility of a future squeeze if demand expands faster than circulating inventory can replenish.

XRP Token Utility Deepens Supply Absorption

TheCryptoBasic described how developers and enterprises are using XRP for tokenized funds, stablecoins such as RLUSD, liquidity pools, automated market makers, settlement corridors, and identity layers. Each of these systems requires XRP for functionality. Once tokens enter these structures, they remain tied to utility rather than speculative trading.

Pumpius describes upcoming zero-knowledge identity systems as another long-term absorber. Identity verification, asset tokenization, and enterprise settlement all require locked resources. XRP becomes part of operational frameworks, further thinning the available supply for the open market.

The deeper story here is simple. On-chain utility pushes XRP into places where traders cannot quickly access it. Ripple token usage gradually eliminates liquidity from exchanges, setting the stage for a potential revaluation in the XRP price.

Ripple Token Demand Grows as Liquidity Thins

Supply shocks do not arrive with announcements or clear signals. Pumpius notes that they build silently. Exchange liquidity drains one mechanism at a time. OTC desks tighten. Remaining buyers begin competing for fewer tokens. A sudden upward shift appears only when pressure becomes impossible to ignore.

According to insights covered by TheCryptoBasic, the quiet period surrounding XRP is not a sign of weakness. It reflects a market undergoing slow structural tightening while attention sits elsewhere. The stability many observe is not calm. It is compression.

The most interesting part is that none of these forces are driven by hype. They emerge from steady utility growth, institutional custody, ETF flows, DeFi lock ups, and Ripple’s controlled supply schedule. Each factor strengthens the underlying pressure that could ignite the next major XRP price movement.

The squeeze is forming underneath the surface. A spark could turn it into the price shift many have been waiting for, and the coming months will show whether these structural forces finally push XRP into its next phase.