XRP has remained one of the most closely watched assets in the crypto market. Despite price stagnation in recent months, its strong utility in cross-border payments and the ongoing Ripple case continue to keep traders alert. As the broader market shifts, some investors are questioning whether XRP is building toward a major change.
One theory gaining traction is the possibility of a supply shock. With large amounts of XRP held in escrow and signs of reduced liquid supply across exchanges, there’s growing interest in how limited availability might affect future price movement. Historical events like Bitcoin’s halving cycles have shown how supply-side shifts can drive rapid surges when demand stays steady.
While XRP maintains a clear use case, investors are also tracking emerging narratives. One that’s gaining momentum is Dawgz AI — a meme coin powered by artificial intelligence and built on Ethereum. It reflects a broader interest in tokens that combine tech innovation with cultural appeal, especially as the market looks beyond legacy assets.
XRP's Current Market Performance and Sentiment Shift
XRP is currently trading around $2.33, with a market cap of over $136.97 billion and a daily trading volume above $2.99 billion. It remains one of the most actively traded altcoins by volume, maintaining a top-10 position across global exchanges according to CoinMarketCap. These numbers reflect a steady demand base despite the broader market's focus on newer narratives.
Investor interest in XRP has remained consistent due to Ripple’s ongoing involvement in cross-border payment technology. The token has found support from long-term holders who view it as a functional asset rather than just a speculative coin. At the same time, XRP’s connection to traditional financial infrastructure has made it appealing to traders looking for tokens with clear use cases. According to Coinbase, XRP has shown relative stability during volatile periods, which reinforces its role as a hedge within crypto portfolios.
The mood around XRP has shifted slightly in recent weeks. As Ripple moves closer to resolving its legal dispute with the SEC, some traders are positioning early for potential regulatory clarity. While no confirmed timeline exists, the expectation of a favorable outcome continues to drive moderate inflows. Meanwhile, crypto enthusiasts are also allocating attention to emerging themes like AI-powered tokens, which offer new types of engagement outside traditional utility models.
Is XRP Approaching a Supply Shock?
A supply shock happens when the available amount of a token on exchanges drops while demand stays steady or rises. This imbalance can lead to sudden price increases because buyers compete for fewer tokens. In the past, Bitcoin showed similar behavior after its halving events, when reduced mining rewards created temporary supply shortages. The same pattern could apply to XRP if certain trends continue.
One reason this theory is gaining attention is Ripple’s escrow system, which holds over 40 billion XRP. Each month, one billion tokens are released, but unused amounts often get locked again. As of May 2025, much of XRP’s total supply remains off the market, which helps limit inflation. According to data from CoinGecko, XRP’s circulating supply is just under 55 billion, even though its max supply is 100 billion.
Exchange balances also appear to be dropping. A recent report by CryptoQuant showed consistent net outflows of XRP from major exchanges, suggesting that more holders are moving their tokens to private wallets. If this trend continues, and demand rises due to a legal breakthrough or renewed interest in RippleNet, a supply shock may become a valid scenario. While it’s too early to confirm, traders are watching these signals closely.
On-Chain Data & Circulating Supply Trends
Recent on-chain data has added weight to the theory that XRP may face reduced liquidity in the months ahead. According to DefiLlama, XRP’s presence across decentralized platforms remains limited, but centralized exchange data shows a steady decline in available supply. It suggests that more holders are choosing long-term storage strategies rather than active trading.
Ripple’s monthly escrow release of 1 billion XRP is partially offset by the amount that returns to escrow. As reported by CoinMarketCap, only a fraction of the released tokens enter circulation. This ongoing recycling process has slowed XRP’s liquid supply growth over time. When fewer new tokens are introduced to the market and selling pressure remains low, supply tightens by default.
Wallet behavior also supports the view that supply is consolidating. Santiment shows that addresses holding 10 million or more XRP have increased their share since early 2024. These large holders are often seen as institutional or strategic actors. If they continue to accumulate and avoid redistributing in the short term, the impact on market supply could become more visible, especially if demand rises during a legal or market catalyst.
Price Forecasts: What Are Analysts Saying?
Market analysts have offered mixed outlooks on XRP heading into the second half of 2025. A favorable court outcome for Ripple could support a gradual upward trend. Others point to slow adoption outside institutional corridors as a reason for caution. According to a recent CoinDesk article, projections range from $0.60 to $0.85 over the next two quarters, depending on liquidity trends and demand signals.
The XRP price prediction models shared by FXStreet emphasize key technical zones. Analysts suggest that maintaining support above $0.50 could open a path toward $0.70 if trading volumes pick up. These projections do not account for unexpected legal or macro shifts, which often cause rapid reactions in crypto markets. Still, traders continue to watch how XRP performs near established resistance levels.
While no forecast is guaranteed, XRP’s long-term outlook depends on regulatory clarity, sustained use in payment corridors, and improved market sentiment. Analysts at AMB Crypto have pointed out that XRP’s supply control and transaction utility give it an advantage in periods of low token inflation. For now, investors are watching key chart patterns and monitoring large-wallet behavior before making directional calls.
Dawgz AI and the Growing Appeal of AI + Blockchain Projects
As XRP’s supply situation draws attention, some investors are also watching newer narratives in the crypto market. A growing number of traders are shifting interest toward tokens that blend real-world themes like artificial intelligence with established blockchain ecosystems. These narratives offer a different kind of value proposition — one that connects cultural relevance with utility and smart contract functionality.
Among these, Dawgz AI has started to stand out. It is an Ethereum-based meme coin that integrates artificial intelligence tools for future community features and decision-making utilities. The project has already raised over $3.6 million and is priced at $0.00438 during its presale phase. Dawgz has completed a successful audit with SolidProof, a leading blockchain security firm, which has helped attract more attention from early participants.
Unlike some meme coins that depend on speculation or NFTs, Dawgz AI focuses purely on AI integration without tokenized collectibles. It positions it differently in a segment where hype often overshadows function. For investors watching both traditional utility tokens like XRP and emerging AI-driven assets, Dawgz represents a new angle in crypto participation. It’s part of a broader shift where users are no longer just speculating on tokens — they are buying into ideas tied to innovation and usability. For more details, please check out the following video:
Why Some Investors Are Watching Dawgz AI Alongside Legacy Tokens
Investor behavior in crypto often shifts based on dominant market themes. During periods of low volatility or delayed breakouts from established coins, many traders explore newer tokens with narrative appeal. This rotation doesn’t mean legacy projects like XRP are forgotten. Instead, it reflects how portfolios are balanced between proven utility and early-stage momentum.
Current interest in AI and crypto has given rise to several new projects, but very few maintain active communities or offer real use case development. Dawgz AI has caught attention partly because it sits at the intersection of meme culture and AI-powered tools. Its Ethereum base gives it smart contract functionality, while its focus on non-NFT utility helps it stand apart. According to Binance Research, AI-related tokens have seen consistent inflows since Q4 2024, which suggests growing interest in this segment.
For many traders, this is not about choosing one token over another. It’s about recognizing where attention is building and how emerging trends are forming. Dawgz AI is part of a broader group of narrative-driven tokens that are being tracked for community growth and development activity. As the XRP supply story continues to unfold, some investors are also placing side bets on tokens like Dawgz to capture early exposure to rising categories.
Wrapping Up: Watching the Market, Weighing the Narratives
XRP continues to hold a strong position in the market due to its unique role in cross-border transactions and the structured release of its token supply. As exchange balances decline and investor confidence builds around a possible legal resolution, the conditions for a supply-driven price shift are slowly taking shape. While no outcome is guaranteed, the fundamentals are being closely watched by long-term holders and market analysts alike.
At the same time, attention is also shifting toward tokens built around real-time narratives. AI has become one of the most discussed themes in crypto this year. Dawgz AI reflects that trend by offering a token model that connects AI-powered functions with Ethereum’s smart contract reliability. As traders look to diversify their holdings, tokens that combine novelty and potential utility are drawing more interest.
Whether you're following XRP’s long-term price story or looking at emerging crypto narratives, it’s clear that attention and liquidity are now shared across both legacy coins and new experiments. Dawgz AI sits firmly in the second group, and its early traction suggests that investors are paying attention. Learn more about Dawgz AI and track its development. Visit its main presale page to explore how it fits into the AI + crypto story.
FAQs Section
How much will XRP be worth in 2025?
XRP’s 2025 price will depend on factors like regulatory outcomes, market demand, and liquidity shifts. While traders watch XRP’s movements, others are also exploring early-stage tokens like Dawgz AI that follow emerging themes in the crypto space.
What is a crypto supply shock?
A supply shock happens when the available tokens for trading drop sharply while demand stays steady or increases. Investors tracking this with XRP are also watching new projects like Dawgz AI, where early accumulation can impact future availability.
Will XRP price go up in 2025?
XRP may rise if legal clarity improves and more liquidity enters the market. Some investors are also adding tokens like Dawgz AI to their watchlist in case AI narratives gain traction during the same period.
What is the maximum XRP that can be reached?
There’s no fixed cap on XRP’s price, but its growth is often tied to utility, adoption, and regulatory clarity. As XRP aims for long-term targets, others are considering projects like Dawgz AI that focus on different market opportunities.
Disclaimer: This is a sponsored article and is for informational purposes only. It does not reflect the views of Crypto Daily, nor is it intended to be used as legal, tax, investment, or financial advice.
