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HomeCrypto NewsMarketExpert Says XRP Won’t Stay in Circulation for Long: Here’s Why

Expert Says XRP Won’t Stay in Circulation for Long: Here’s Why

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Black Swan Capitalist co-founder Versan Aljarrah has once again reaffirmed his conviction about the future of XRP.

This time, he suggests that XRP’s strategic utility will eventually make it too valuable to remain in open circulation. 

In a new post, Aljarrah wrote, “When XRP’s strategic use case is fully realized, it won’t stay in circulation for long”. His statement speculates that the token may become scarce as institutional utility expands.

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Versan Aljarrah on X
Versan Aljarrah on X

XRP Strategic Role in Global Finance

Aljarrah has consistently argued that XRP will play a foundational role in the new global financial system. He sees it serving as a bridge asset for tokenized money flows and institutional liquidity operations.

In earlier commentaries, he described XRP not merely as a crypto investment but as a “key to a new financial ecosystem.”

His view suggests that XRP’s real purpose goes far beyond retail speculation. Specifically, he has argued that XRP’s utility is to underpin cross-border value transfer and settlement infrastructure on a scale that supports trillions in tokenized assets.

“The Price Must Reflect Utility”

Aljarrah has also maintained that XRP’s price will eventually need to rise significantly to provide sufficient liquidity for large-scale institutional operations. He previously said that a $3 XRP cannot support a system processing trillions in tokenized assets, implying that liquidity-driven demand will force the market to reprice XRP.

As institutional adoption increases, he believes the circulating supply will shrink dramatically via institutional custody, corporate treasury integration, or direct use within Ripple’s expanding network.

Ripple’s recent acquisition of GTreasury, a major player in the $120 trillion corporate treasury market, reinforces this thesis. The move positions Ripple to embed XRP within global liquidity management systems.

Institutional Accumulation and Market Silence

Furthermore, Aljarrah has long warned that institutional accumulation of XRP is happening quietly. In his view, major financial entities like JPMorgan and BlackRock are strategically preparing to integrate XRP infrastructure, though no public confirmation has yet supported this claim.

He believes the absence of open discussion about XRP in mainstream banking circles is deliberate.

From Circulation to Utility Reserve

Ultimately, Aljarrah’s latest statement implies that once XRP’s full strategic role is recognized, much of its supply could move off exchanges and into institutional reserves, liquidity pools, or automated settlement systems, effectively reducing the token’s public float.

This scenario aligns with his earlier warning that a “supply shock is inevitable”. 

Notably, the booming XRP DeFi sector, which continuously locks XRP out of circulation, also fuels this outlook. Proponents believe this restricted supply will help XRP’s price surge far beyond double digits.

For Aljarrah and long-time XRP supporters, XRP is about long-term positioning not short-term gains. They believe holding XRP now means owning a stake in what they see as the backbone of the next global monetary infrastructure.

DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

Author

Abdulkarim Abdulwahab
Abdulkarim Abdulwahabhttp://thecryptobasic.com
Abdulkarim Abdulwahab is a seasoned crypto journalist who has established himself as a trusted voice in the world of blockchain and Web3. His extensive knowledge of the crypto space enables him to break down complex concepts into accessible language.

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