Prominent analyst Cheeky Crypto (203,000 followers on YouTube) set out to verify a fast-spreading claim that XRP’s circulating supply could “vanish overnight,” and his conclusion is more nuanced than the headline suggests: nothing in the ledger disappears, but the amount of XRP that is truly liquid could be far smaller than most dashboards imply—small enough, in his view, to set the stage for an abrupt liquidity squeeze if demand spikes. XRP Supply Shock? The video opens with the host acknowledging his own skepticism—“I woke up to a rumor that XRP supply could vanish overnight. Sounds crazy, right?”—before committing to test the thesis rather than dismiss it. He frames the exercise as an attempt to reconcile a long-standing critique (“XRP’s supply is too large for high prices”) with a rival view taking hold among prominent community voices: that much of the supply counted as “circulating” is effectively unavailable to trade. His first step is a straightforward data check. Pulling public figures, he finds CoinMarketCap showing roughly 59.6 billion XRP as circulating, while XRPScan reports about 64.7 billion. The divergence prompts what becomes the video’s key methodological point: different sources count “circulating” differently. Related Reading: Analyst Sounds Major XRP Warning: Last Chance To Get In As Accumulation Balloons As he explains it, the higher on-ledger number likely includes balances that aggregators exclude or treat as restricted, most notably Ripple’s programmatic escrow. He highlights that Ripple still “holds a chunk of XRP in escrow, about 35.3 billion XRP locked up across multiple wallets, with a nominal schedule of up to 1 billion released per month and unused portions commonly re-escrowed. Those coins exist and are accounted for on-ledger, but “they aren’t actually sitting on exchanges” and are not immediately available to buyers. In his words, “for all intents and purposes, that escrow stash is effectively off of the market.” From there, the analysis moves from headline “circulating supply” to the subtler concept of effective float. Beyond escrow, he argues that large strategic holders—banks, fintechs, or other whales—may sit on material balances without supplying order books. When you strip out escrow and these non-selling stashes, he says, “the effective circulating supply… is actually way smaller than the 59 or even 64 billion figure.” He cites community estimates in the “20 or 30 billion” range for what might be truly liquid at any given moment, while emphasizing that nobody has a precise number. That effective-float framing underpins the crux of his thesis: a potential supply shock if demand accelerates faster than fresh sell-side supply appears. “Price is a dance between supply and demand,” he says; if institutional or sovereign-scale users suddenly need XRP and “the market finds that there isn’t enough XRP readily available,” order books could thin out and prices could “shoot on up, sometimes violently.” His phrase “circulating supply could collapse overnight” is presented not as a claim that tokens are destroyed or removed from the ledger, but as a market-structure scenario in which available inventory to sell dries up quickly because holders won’t part with it. How Could The XRP Supply Shock Happen? On the demand side, he anchors the hypothetical to tokenization. He points to the “very early stages of something huge in finance”—on-chain tokenization of debt, stablecoins, CBDCs and even gold—and argues the XRP Ledger aims to be “the settlement layer” for those assets.He references Ripple CTO David Schwartz’s earlier comments about an XRPL pivot toward tokenized assets and notes that an institutional research shop (Bitwise) has framed XRP as a way to play the tokenization theme. In his construction, if “trillions of dollars in value” begin settling across XRPL rails, working inventories of XRP for bridging, liquidity and settlement could rise sharply, tightening effective float. Related Reading: XRP Bearish Signal: Whales Offload $486 Million In Asset To illustrate, he offers two analogies. First, the “concert tickets” model: you think there are 100,000 tickets (100B supply), but 50,000 are held by the promoter (escrow) and 30,000 by corporate buyers (whales), leaving only 20,000 for the public; if a million people want in, prices explode. Second, a comparison to Bitcoin’s halving: while XRP has no programmatic halving, he proposes that a sudden adoption wave could function like a de facto halving of available supply—“XRP’s version of a halving could actually be the adoption event.” He also updates the narrative context that long dogged XRP. Once derided for “too much supply,” he argues the script has “totally flipped.” He cites the current cycle’s optics—“XRP is sitting above $3 with a market cap north of around $180 billion”—as evidence that raw supply counts did not cap price as tightly as critics claimed, and as a backdrop for why a scarcity narrative is gaining traction. Still, he declines to publish targets or timelines, repeatedly stressing uncertainty and risk. “I’m not a financial adviser… cryptocurrencies are highly volatile,” he reminds viewers, adding that tokenization could take off “on some other platform,” unfold more slowly than enthusiasts expect, or fail to get to “sudden shock” scale. The verdict he offers is deliberately bound. The theory that “XRP supply could vanish overnight” is imprecise on its face; the ledger will not erase coins. But after examining dashboard methodologies, escrow mechanics and the behavior of large holders, he concludes that the effective float could be meaningfully smaller than headline supply figures, and that a fast-developing tokenization use case could, under the right conditions, stress that float. “Overnight is a dramatic way to put it,” he concedes. “The change could actually be very sudden when it comes.” At press time, XRP traded at $3.0198. Featured image created with DALL.E, chart from TradingView.comProminent analyst Cheeky Crypto (203,000 followers on YouTube) set out to verify a fast-spreading claim that XRP’s circulating supply could “vanish overnight,” and his conclusion is more nuanced than the headline suggests: nothing in the ledger disappears, but the amount of XRP that is truly liquid could be far smaller than most dashboards imply—small enough, in his view, to set the stage for an abrupt liquidity squeeze if demand spikes. XRP Supply Shock? The video opens with the host acknowledging his own skepticism—“I woke up to a rumor that XRP supply could vanish overnight. Sounds crazy, right?”—before committing to test the thesis rather than dismiss it. He frames the exercise as an attempt to reconcile a long-standing critique (“XRP’s supply is too large for high prices”) with a rival view taking hold among prominent community voices: that much of the supply counted as “circulating” is effectively unavailable to trade. His first step is a straightforward data check. Pulling public figures, he finds CoinMarketCap showing roughly 59.6 billion XRP as circulating, while XRPScan reports about 64.7 billion. The divergence prompts what becomes the video’s key methodological point: different sources count “circulating” differently. Related Reading: Analyst Sounds Major XRP Warning: Last Chance To Get In As Accumulation Balloons As he explains it, the higher on-ledger number likely includes balances that aggregators exclude or treat as restricted, most notably Ripple’s programmatic escrow. He highlights that Ripple still “holds a chunk of XRP in escrow, about 35.3 billion XRP locked up across multiple wallets, with a nominal schedule of up to 1 billion released per month and unused portions commonly re-escrowed. Those coins exist and are accounted for on-ledger, but “they aren’t actually sitting on exchanges” and are not immediately available to buyers. In his words, “for all intents and purposes, that escrow stash is effectively off of the market.” From there, the analysis moves from headline “circulating supply” to the subtler concept of effective float. Beyond escrow, he argues that large strategic holders—banks, fintechs, or other whales—may sit on material balances without supplying order books. When you strip out escrow and these non-selling stashes, he says, “the effective circulating supply… is actually way smaller than the 59 or even 64 billion figure.” He cites community estimates in the “20 or 30 billion” range for what might be truly liquid at any given moment, while emphasizing that nobody has a precise number. That effective-float framing underpins the crux of his thesis: a potential supply shock if demand accelerates faster than fresh sell-side supply appears. “Price is a dance between supply and demand,” he says; if institutional or sovereign-scale users suddenly need XRP and “the market finds that there isn’t enough XRP readily available,” order books could thin out and prices could “shoot on up, sometimes violently.” His phrase “circulating supply could collapse overnight” is presented not as a claim that tokens are destroyed or removed from the ledger, but as a market-structure scenario in which available inventory to sell dries up quickly because holders won’t part with it. How Could The XRP Supply Shock Happen? On the demand side, he anchors the hypothetical to tokenization. He points to the “very early stages of something huge in finance”—on-chain tokenization of debt, stablecoins, CBDCs and even gold—and argues the XRP Ledger aims to be “the settlement layer” for those assets.He references Ripple CTO David Schwartz’s earlier comments about an XRPL pivot toward tokenized assets and notes that an institutional research shop (Bitwise) has framed XRP as a way to play the tokenization theme. In his construction, if “trillions of dollars in value” begin settling across XRPL rails, working inventories of XRP for bridging, liquidity and settlement could rise sharply, tightening effective float. Related Reading: XRP Bearish Signal: Whales Offload $486 Million In Asset To illustrate, he offers two analogies. First, the “concert tickets” model: you think there are 100,000 tickets (100B supply), but 50,000 are held by the promoter (escrow) and 30,000 by corporate buyers (whales), leaving only 20,000 for the public; if a million people want in, prices explode. Second, a comparison to Bitcoin’s halving: while XRP has no programmatic halving, he proposes that a sudden adoption wave could function like a de facto halving of available supply—“XRP’s version of a halving could actually be the adoption event.” He also updates the narrative context that long dogged XRP. Once derided for “too much supply,” he argues the script has “totally flipped.” He cites the current cycle’s optics—“XRP is sitting above $3 with a market cap north of around $180 billion”—as evidence that raw supply counts did not cap price as tightly as critics claimed, and as a backdrop for why a scarcity narrative is gaining traction. Still, he declines to publish targets or timelines, repeatedly stressing uncertainty and risk. “I’m not a financial adviser… cryptocurrencies are highly volatile,” he reminds viewers, adding that tokenization could take off “on some other platform,” unfold more slowly than enthusiasts expect, or fail to get to “sudden shock” scale. The verdict he offers is deliberately bound. The theory that “XRP supply could vanish overnight” is imprecise on its face; the ledger will not erase coins. But after examining dashboard methodologies, escrow mechanics and the behavior of large holders, he concludes that the effective float could be meaningfully smaller than headline supply figures, and that a fast-developing tokenization use case could, under the right conditions, stress that float. “Overnight is a dramatic way to put it,” he concedes. “The change could actually be very sudden when it comes.” At press time, XRP traded at $3.0198. Featured image created with DALL.E, chart from TradingView.com

Facts Vs. Hype: Analyst Examines XRP Supply Shock Theory

2025/09/18 11:00
5 min read

Prominent analyst Cheeky Crypto (203,000 followers on YouTube) set out to verify a fast-spreading claim that XRP’s circulating supply could “vanish overnight,” and his conclusion is more nuanced than the headline suggests: nothing in the ledger disappears, but the amount of XRP that is truly liquid could be far smaller than most dashboards imply—small enough, in his view, to set the stage for an abrupt liquidity squeeze if demand spikes.

XRP Supply Shock?

The video opens with the host acknowledging his own skepticism—“I woke up to a rumor that XRP supply could vanish overnight. Sounds crazy, right?”—before committing to test the thesis rather than dismiss it. He frames the exercise as an attempt to reconcile a long-standing critique (“XRP’s supply is too large for high prices”) with a rival view taking hold among prominent community voices: that much of the supply counted as “circulating” is effectively unavailable to trade.

His first step is a straightforward data check. Pulling public figures, he finds CoinMarketCap showing roughly 59.6 billion XRP as circulating, while XRPScan reports about 64.7 billion. The divergence prompts what becomes the video’s key methodological point: different sources count “circulating” differently.

As he explains it, the higher on-ledger number likely includes balances that aggregators exclude or treat as restricted, most notably Ripple’s programmatic escrow. He highlights that Ripple still “holds a chunk of XRP in escrow, about 35.3 billion XRP locked up across multiple wallets, with a nominal schedule of up to 1 billion released per month and unused portions commonly re-escrowed. Those coins exist and are accounted for on-ledger, but “they aren’t actually sitting on exchanges” and are not immediately available to buyers. In his words, “for all intents and purposes, that escrow stash is effectively off of the market.”

From there, the analysis moves from headline “circulating supply” to the subtler concept of effective float. Beyond escrow, he argues that large strategic holders—banks, fintechs, or other whales—may sit on material balances without supplying order books. When you strip out escrow and these non-selling stashes, he says, “the effective circulating supply… is actually way smaller than the 59 or even 64 billion figure.” He cites community estimates in the “20 or 30 billion” range for what might be truly liquid at any given moment, while emphasizing that nobody has a precise number.

That effective-float framing underpins the crux of his thesis: a potential supply shock if demand accelerates faster than fresh sell-side supply appears. “Price is a dance between supply and demand,” he says; if institutional or sovereign-scale users suddenly need XRP and “the market finds that there isn’t enough XRP readily available,” order books could thin out and prices could “shoot on up, sometimes violently.”

His phrase “circulating supply could collapse overnight” is presented not as a claim that tokens are destroyed or removed from the ledger, but as a market-structure scenario in which available inventory to sell dries up quickly because holders won’t part with it.

How Could The XRP Supply Shock Happen?

On the demand side, he anchors the hypothetical to tokenization. He points to the “very early stages of something huge in finance”—on-chain tokenization of debt, stablecoins, CBDCs and even gold—and argues the XRP Ledger aims to be “the settlement layer” for those assets.He references Ripple CTO David Schwartz’s earlier comments about an XRPL pivot toward tokenized assets and notes that an institutional research shop (Bitwise) has framed XRP as a way to play the tokenization theme. In his construction, if “trillions of dollars in value” begin settling across XRPL rails, working inventories of XRP for bridging, liquidity and settlement could rise sharply, tightening effective float.

To illustrate, he offers two analogies. First, the “concert tickets” model: you think there are 100,000 tickets (100B supply), but 50,000 are held by the promoter (escrow) and 30,000 by corporate buyers (whales), leaving only 20,000 for the public; if a million people want in, prices explode. Second, a comparison to Bitcoin’s halving: while XRP has no programmatic halving, he proposes that a sudden adoption wave could function like a de facto halving of available supply—“XRP’s version of a halving could actually be the adoption event.”

He also updates the narrative context that long dogged XRP. Once derided for “too much supply,” he argues the script has “totally flipped.” He cites the current cycle’s optics—“XRP is sitting above $3 with a market cap north of around $180 billion”—as evidence that raw supply counts did not cap price as tightly as critics claimed, and as a backdrop for why a scarcity narrative is gaining traction.

Still, he declines to publish targets or timelines, repeatedly stressing uncertainty and risk. “I’m not a financial adviser… cryptocurrencies are highly volatile,” he reminds viewers, adding that tokenization could take off “on some other platform,” unfold more slowly than enthusiasts expect, or fail to get to “sudden shock” scale.

The verdict he offers is deliberately bound. The theory that “XRP supply could vanish overnight” is imprecise on its face; the ledger will not erase coins. But after examining dashboard methodologies, escrow mechanics and the behavior of large holders, he concludes that the effective float could be meaningfully smaller than headline supply figures, and that a fast-developing tokenization use case could, under the right conditions, stress that float. “Overnight is a dramatic way to put it,” he concedes. “The change could actually be very sudden when it comes.”

At press time, XRP traded at $3.0198.

XRP price
Market Opportunity
MemeCore Logo
MemeCore Price(M)
$1.68499
$1.68499$1.68499
-0.62%
USD
MemeCore (M) Live Price Chart
Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact [email protected] for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

Trend Research has liquidated its ETH holdings and currently has only 0.165 coins remaining.

Trend Research has liquidated its ETH holdings and currently has only 0.165 coins remaining.

PANews reported on February 8 that, according to Arkham data, Trend Research, a subsidiary of Yilihua, has liquidated its ETH holdings, with only 0.165 ETH remaining
Share
PANews2026/02/08 11:07
FCA, crackdown on crypto

FCA, crackdown on crypto

The post FCA, crackdown on crypto appeared on BitcoinEthereumNews.com. The regulation of cryptocurrencies in the United Kingdom enters a decisive phase. The Financial Conduct Authority (FCA) has initiated a consultation to set minimum standards on transparency, consumer protection, and digital custody, in order to strengthen market confidence and ensure safer operations for exchanges, wallets, and crypto service providers. The consultation was published on May 2, 2025, and opened a public discussion on operational responsibilities and safeguarding requirements for digital assets (CoinDesk). The goal is to make the rules clearer without hindering the sector’s evolution. According to the data collected by our regulatory monitoring team, in the first weeks following the publication, the feedback received from professionals and operators focused mainly on custody, incident reporting, and insurance requirements. Industry analysts note that many responses require technical clarifications on multi-sig, asset segregation, and recovery protocols, as well as proposals to scale obligations based on the size of the operator. FCA Consultation: What’s on the Table The consultation document clarifies how to apply rules inspired by traditional finance to the crypto perimeter, balancing innovation, market integrity, and user protection. In this context, the goal is to introduce minimum standards for all firms under the supervision of the FCA, an essential step for a more transparent and secure sector, with measurable benefits for users. The proposed pillars Obligations towards consumers: assessment on the extension of the Consumer Duty – a requirement that mandates companies to provide “good outcomes” – to crypto services, with outcomes for users that are traceable and verifiable. Operational resilience: introduction of continuity requirements, incident response plans, and periodic testing to ensure the operational stability of platforms even in adverse scenarios. Financial Crime Prevention: strengthening AML/CFT measures through more stringent transaction monitoring and structured counterpart checks. Custody and safeguarding: definition of operational methods for the segregation of client assets, secure…
Share
BitcoinEthereumNews2025/09/18 05:40
Bitcoin Steady as Fed Cuts Interest Rates for First Time Since December

Bitcoin Steady as Fed Cuts Interest Rates for First Time Since December

The post Bitcoin Steady as Fed Cuts Interest Rates for First Time Since December appeared on BitcoinEthereumNews.com. In brief The Federal Reserve had kept interest rates unchanged since last December. U.S. President Donald Trump has been hammering the Fed to cut rates. Crypto and other assets typically benefit from rate cuts that increase financial liquidity. The U.S. central bank, as widely expected, cut the federal funds rate by 0.25% Wednesday, amid recent signs that the economy was faltering and needed a boost—and under relentless pressure from President Donald Trump. Bitcoin and other major digital assets traded largely flat  in the immediate aftermath. The largest cryptocurrency by market capitalization was recently changing hands just above $116,000, up 0.2% over the past hour hours, according to crypto markets data provider CoinGecko. BTC rallied in recent days with investors possibly pricing in the anticipated decision. Ethereum, the second-largest cryptocurrency by market value, was trading at $4,501, flat over the same period. The Fed slashed the interest rate to a range between 4% and 4.25% after a downward revision in a Department of Labor report showing that the U.S had created 911,000 fewer jobs than initially reported for a year-long period ending in March, and other concerning economic signs. “Uncertainty about the economic outlook remains elevated,” the Fed noted in a statement. Those concerns outweighed the threat of inflation, which has risen to 2.9% on an annual basis, stubbornly above the bank’s longstanding 2% goal. Newly sworn-in governor Stephen Miran, a White House appointee, dissented from the decision, voting for a .50% rate cut. The Fed has a dual mission to keep inflation low and ensure full employment. In Telegram message to Decrypt, Noelle Acheson, the author of the Crypto Is Macro Now newsletter, wrote that the big deal wasn’t the expected rate cut but updated economic forecasts from Fed officials, showing that central bankers are “getting more nervous about the…
Share
BitcoinEthereumNews2025/09/18 14:49