XRP, originally fixed supply of 100 billion tokens, still has a large number of tokens locked in custody accounts and in circulation. Critics have long pointed out that such a high supply would suppress price growth. Strategic destruction through Ripple Labs or community-driven mechanisms could significantly change this situation.

Why supply destruction is under discussion

1. Ripple's custodial holdings: Ripple currently holds a large amount of XRP in custody (over 40 billion). Although they release a portion each month, the company has the ability to destroy some of these tokens, thereby enhancing long-term trust and addressing inflation issues.

2. Community pressure: As more projects and chains adopt token destruction to enhance token economics (e.g., Ethereum's EIP-1559), XRP holders are calling for similar measures to boost investor confidence and price action.

3. Regulatory clarity in sight: Once the SEC lawsuit reaches a conclusion (expected by 2025), Ripple may take bold strategic moves such as destroying tokens to revitalize the ecosystem.

📈 Factors that could drive XRP to soar

In addition to potential destruction, XRP has other strong catalysts:

✅ Regulatory resolution

Ripple's lawsuit with the SEC has loomed over XRP for years. A favorable outcome would not only solidify XRP's status as a non-security but also open the door for U.S. exchanges and institutional investors to return or enter for the first time.

✅ Ripple's banking partnerships

RippleNet is currently used by over 300 financial institutions worldwide. As real-world blockchain utility becomes increasingly mainstream, XRP's cross-border payment use case stands out for its speed and cost efficiency.

✅ Global liquidity hub

Ripple is establishing its liquidity hub, making XRP a core participant in cryptocurrency and fiat currency liquidity. This integration could increase on-demand liquidity usage, naturally driving up the demand for XRP.

✅ Scarcity and psychology

If XRP were to destroy even 10-20 billion tokens, the market psychology alone could drive retail and institutional investors to rush in, believing they are witnessing the early stages of a massive breakthrough. #山寨币ETF展望 #美国CLARITY法案 #看懂K线