Major

Axelar

DeFi

A structural shift is quietly forming in the XRP ecosystem, one that could dramatically alter the token’s supply dynamics. Liquidity that once moved freely across exchanges is increasingly finding its way into contracts, custody solutions, and <a href="https://timestabloid.com/confirmation-of-institutional-staking-with-xrp-details/" rel="noopener noreferrer nofollow">yield-bearing platforms</a>. Investors focused only on daily price swings may be unprepared for the scale and speed of this change.
Crypto commentator Zach Rector sounded the alarm on X, predicting that <a href="https://timestabloid.com/13-of-xrp-supply-could-be-taken-off-the-market-heres-why/" rel="noopener noreferrer nofollow">billions of XRP tokens will soon be locked up</a> and deployed across multiple decentralized finance (DeFi) protocols. His view highlights a coming “supply shock,” as vast amounts of XRP are removed from active circulation and redirected into long-term on-chain and institutional arrangements.
<h2 id="b-defi-expansion-on-the-xrpl-b">DeFi Expansion on the XRPL</h2>
Central to this trend is the rapid evolution of the <a href="https://timestabloid.com/xrp-ledger-evm-sidechain-is-now-live/" rel="noopener noreferrer nofollow">XRP Ledger (XRPL) and its new Ethereum Virtual Machine (EVM) sidechain</a>. This sidechain enables Ethereum-style smart contracts, allowing XRP to be used in lending markets, liquidity pools, and other sophisticated DeFi applications without leaving the XRPL ecosystem.&nbsp;
The sidechain unlocks a level of programmability that was previously impossible for XRP, opening doors for large-scale token lockups.
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 We are about to see BILLIONS of XRP locked up and deployed in various DeFi protocols! Most of the crypto space does not understand the supply shock that is coming for XRP… <a href="https://t.co/Z71vqdc9tt" rel="noopener noreferrer nofollow">https://t.co/Z71vqdc9tt</a>
 — Zach Rector (@ZachRector7) <a href="https://twitter.com/ZachRector7/status/1970881930079219756?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">September 24, 2025</a>
</blockquote>
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<h2 id="b-cross-chain-bridges-and-institutional-access-b">Cross-Chain Bridges and Institutional Access</h2>
The growth of cross-chain bridges further accelerates the movement of XRP into DeFi. Integrations such as <a href="https://timestabloid.com/axelar-bridge-unlocks-new-horizons-for-xrp-utility/" rel="noopener noreferrer nofollow">Axelar now connect the XRPL EVM with numerous other networks,</a> enabling XRP to flow seamlessly into various blockchain ecosystems.&nbsp;
Institutions can acquire and deploy large XRP positions across chains with minimal friction, increasing the likelihood of substantial and prolonged token immobilization.
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 We are on X, follow us to connect with us :- <a href="https://twitter.com/TimesTabloid1?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@TimesTabloid1</a>
 — TimesTabloid (@TimesTabloid1) <a href="https://twitter.com/TimesTabloid1/status/1934162718258499855?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">June 15, 2025</a>
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<h2 id="b-yield-bearing-opportunities-b">Yield-Bearing Opportunities</h2>
Major custodians and exchanges are also exploring <a href="https://timestabloid.com/breakdown-of-xrp-staking-and-how-earning-yields-with-xrp-works/" rel="noopener noreferrer nofollow">yield-generating products for XRP</a>, including wrapped versions and <a href="https://timestabloid.com/flare-introduces-low-risk-staking-for-xrp-holders-details/" rel="noopener noreferrer nofollow">staking-like services.</a>&nbsp;
These offerings encourage holders to commit their tokens to long-term programs, whether for passive income or enhanced liquidity provision. Such incentives make it far more attractive to keep XRP locked rather than available for immediate trading.
<h2 id="b-market-impact-and-considerations-b">Market Impact and Considerations</h2>
Analysts suggest that even a modest adoption of these mechanisms could sideline billions of tokens, a shift that would tighten circulating supply and amplify price movements. While technical risks, regulatory hurdles, and security concerns remain, the infrastructure supporting large-scale XRP lockups is now firmly in place.
The convergence of DeFi innovation, cross-chain access, and institutional-grade yield products represents a pivotal moment for XRP. If these trends continue, the market may soon witness the very supply shock Zach Rector foresees—one that could reshape liquidity and price dynamics across the entire crypto landscape.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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The post <a href="https://timestabloid.com/pundit-we-are-about-to-see-billions-of-xrp-locked-up-heres-why/" rel="noopener noreferrer nofollow">Pundit: We Are about to See Billions of XRP Locked Up. Here’s Why</a> appeared first on <a href="https://timestabloid.com" rel="noopener noreferrer nofollow">Times Tabloid</a>.

Pundit: We Are about to See Billions of XRP Locked Up. Here’s Why

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