The post Could XRP Surge? Experts Break Down How a Supply Shock Might Fuel a Rally appeared on BitcoinEthereumNews.com. Analysts explain real XRP supply shock occurs through multiple removal mechanisms ETFs have purchased approximately $906 million worth of XRP from market inventory DeFi locking, institutional custody and escrow returns reduce tradable token pool The concept of an XRP supply shock has generated discussion recently, but two analysts state that most investors misunderstand the actual mechanics. EasyA co-founder Phil Kwok and veteran Bitcoin investor Pumpius outlined how supply shocks develop and why current price stability may mask underlying structural pressure. Kwok argues that genuine supply shock begins when XRP exits the open market through various channels. Decentralized finance will serve as one of the primary drivers of this process, according to his analysis. DeFi protocols lock tokens into systems where they cannot easily return to exchange order books. a lot of people talk about supply shocks sending the price of $XRP skyrocketing. but almost nobody explains how that actually happens. in a nutshell, xrp must be taken off the market. and one of the biggest levers for this is defi. defi takes xrp and locks it up in liquidity… — Phil Kwok | EasyA (@kwok_phil) December 3, 2025 DeFi Systems Remove Tokens From Trading Pool Liquidity pools, lending markets, collateral systems and staking mechanisms gradually absorb tokens, reducing liquid supply available to traders. Kwok stated that DeFi layers on XRPL matter because these ecosystems create an early structural squeeze on circulating supply as they expand. Pumpius outlined several mechanisms that remove XRP from circulation. Spot ETFs must purchase actual tokens rather than futures or synthetic exposure, meaning issuers buy directly from markets and pull liquid supply off exchanges. As these products attract inflows, they steadily drain available inventory. XRP ETFs have purchased approximately $906 million worth of tokens following inflows exceeding $850 million recently. This equals nearly 500 million XRP… The post Could XRP Surge? Experts Break Down How a Supply Shock Might Fuel a Rally appeared on BitcoinEthereumNews.com. Analysts explain real XRP supply shock occurs through multiple removal mechanisms ETFs have purchased approximately $906 million worth of XRP from market inventory DeFi locking, institutional custody and escrow returns reduce tradable token pool The concept of an XRP supply shock has generated discussion recently, but two analysts state that most investors misunderstand the actual mechanics. EasyA co-founder Phil Kwok and veteran Bitcoin investor Pumpius outlined how supply shocks develop and why current price stability may mask underlying structural pressure. Kwok argues that genuine supply shock begins when XRP exits the open market through various channels. Decentralized finance will serve as one of the primary drivers of this process, according to his analysis. DeFi protocols lock tokens into systems where they cannot easily return to exchange order books. a lot of people talk about supply shocks sending the price of $XRP skyrocketing. but almost nobody explains how that actually happens. in a nutshell, xrp must be taken off the market. and one of the biggest levers for this is defi. defi takes xrp and locks it up in liquidity… — Phil Kwok | EasyA (@kwok_phil) December 3, 2025 DeFi Systems Remove Tokens From Trading Pool Liquidity pools, lending markets, collateral systems and staking mechanisms gradually absorb tokens, reducing liquid supply available to traders. Kwok stated that DeFi layers on XRPL matter because these ecosystems create an early structural squeeze on circulating supply as they expand. Pumpius outlined several mechanisms that remove XRP from circulation. Spot ETFs must purchase actual tokens rather than futures or synthetic exposure, meaning issuers buy directly from markets and pull liquid supply off exchanges. As these products attract inflows, they steadily drain available inventory. XRP ETFs have purchased approximately $906 million worth of tokens following inflows exceeding $850 million recently. This equals nearly 500 million XRP…

                                                                               Lawmakers in the US House of Representatives and Senate met with cryptocurrency industry leaders in three separate roundtable events this week.                     Members of the US Congress met with key figures in the cryptocurrency industry to discuss issues and potential laws related to the establishment of a strategic Bitcoin reserve and a market structure.On Tuesday, a group of lawmakers that included Alaska Representative Nick Begich and Ohio Senator Bernie Moreno met with Strategy co-founder Michael Saylor and others in a roundtable event regarding the BITCOIN Act, a bill to establish a strategic Bitcoin (BTC) reserve. The discussion was hosted by the advocacy organization Digital Chamber and its affiliates, the Digital Power Network and Bitcoin Treasury Council.“Legislators and the executives at yesterday’s roundtable agree, there is a need [for] a Strategic Bitcoin Reserve law to ensure its longevity for America’s financial future,” Hailey Miller, director of government affairs and public policy at Digital Power Network, told Cointelegraph. “Most attendees are looking for next steps, which may mean including the SBR within the broader policy frameworks already advancing.“Read more