Crypto expert Zach Rector has raised the possibility of XRP undergoing a supply shock due to a potential massive token burn, which could be on the horizon. Such development will undoubtedly provide a major boost for the crypto token, considering the impact that token burns have on a crypto’s value.
How More XRP Could Be Burned
Zach Rector mentioned in an X (formerly Twitter) post that there would be an XRP supply shock. He predicts that this will happen as more XRP is burned with the creation of XRP bridges and an increase in XRP lockups. He also alluded to Decentralized Finance (DeFi) activity on the XRP Ledger (XRPL) as another that could increase the XRP burns.
Rector made this statement while reacting to an update from Sologenic, a tokenization platform on the XRP Ledger, in which they mentioned that over 1.6 million XRP have been bridged to the Cosmos ecosystem using the XRPL Coreum Bridge. Following Rector’s statement, another X user remarked that there weren’t any added benefits to XRP being bridged to other blockchains.
This was in direct criticism of Rector’s statement, which suggested that creating more bridges could help increase XRP’s value. Meanwhile, another X user suggested that even if the 1.6 million XRP were burned, that is unlikely to significantly impact XRP’s price, considering the token’s circulating supply is over 55 billion XRP.
XRP Is At A “Pivotal Moment”
In a video posted on his YouTube channel, Rector mentioned that XRP was at a “pivotal moment” while highlighting several developments in the XRP ecosystem that could help increase the token’s adoption. These include Ripple’s proposed launch of its stablecoin on the XRPL and Ethereum networks.
As part of his analysis, Rector drew attention to Ripple’s President Monica Lang’s statement, in which she mentioned how issuing a stablecoin on XRPL and Ethereum will “unlock new opportunities for institutional and DeFi use cases across multiple ecosystems.” Specifically, Lang added that the stablecoin would help expand both XRPL and XRP’s utility.
Meanwhile, Rector also alluded to the newly launched Automated Market Maker (AMM) on the XRPL and liquidity bridges as other developments that present a bullish outlook for the XRP token. He believes they will help increase the crypto token’s adoption and utility. Having highlighted XRP’s bullish fundamentals, he again suggested that it was impossible for XRP to miss this bull run.
The crypto expert previously mentioned that XRP “will not miss this bull run” despite its current underperformance in the crypto market. Back then, he also highlighted the crypto token’s fundamentals as one of the reasons he holds this belief.
Token price struggles above $0.6 | Source: XRPUSDT on Tradingview.com
Featured image from LinkedIn, chart from Tradingview.com
