Researcher SMQKE recently posted a tweet asserting that XRP is on track to experience a supply shock before Bitcoin. The statement draws directly from a report by WisdomTree, which analyzes the differing supply dynamics between the two cryptocurrencies.
According to the report, Bitcoin is expected to reach its maximum supply of 21 million units around the year 2140, while XRP is projected to reach its full circulating supply within the next few years.
The tweet emphasized this contrast, highlighting XRP’s shorter issuance timeline as a potential catalyst for a supply shock.
SMQKE shared WisdomTree’s data to substantiate the claim, and the tweet included a snapshot from the report, which stated that XRP will soon hit its maximum supply, after which deflationary pressure from burned transaction fees will become the primary factor influencing its supply trajectory.
‼️THERE WILL BE A SUPPLY SHOCK FOR XRP BEFORE BITCOIN‼️
“Bitcoin should reach its max supply of 21 million units in approximately 2140, and XRP should reach its max supply IN THE NEXT FEW YEARS.” 📈🎯🔥
This is documented below.📝👇 pic.twitter.com/tLK4zELzU4
— SMQKE (@SMQKEDQG) June 23, 2025
Different Supply Models for XRP and Bitcoin
The WisdomTree article explained that XRP transaction fees are systematically burned, contributing to a steady decrease in the overall supply over time. Since its inception, about 12 million XRP units have already been burned.
In addition, XRP’s release from Ripple-managed escrow accounts is a structured process that will conclude once the 55 billion initially escrowed tokens are fully distributed. This predictable release is intended to provide transparency and consistency in supply.
Once the scheduled releases are complete, new XRP issuance will effectively cease, and any future reduction in circulating supply will stem solely from transaction-related burns.
We are on X, follow us to connect with us :- @TimesTabloid1
— TimesTabloid (@TimesTabloid1) June 15, 2025
Community Reactions Highlight Key Variables
SMQKE’s tweet prompted remarks from other users on X. One user, Tell, noted that the onset of a supply shock would depend on several key factors, including actual adoption levels, investor sentiment, and Ripple’s management of its remaining escrow. Tell argued that a true shock in supply would only materialize if Ripple tightens distribution while demand increases. In such a case, constrained availability could exert upward pressure on the price.
Another user, PhantomPatriot, commented on the extended timeframe associated with Bitcoin’s supply cap, expressing frustration over the 2140 projection. The user added that they hoped XRP would realize its supply-related milestones in a much shorter period, implicitly aligning with SMQKE’s view that XRP’s supply trajectory is more immediately relevant to market dynamics.
XRP’s Scarcity-Driven Outlook
The WisdomTree report emphasized that XRP has a low correlation with Bitcoin and Ether, which may enhance its value in a diversified portfolio. It also identified XRP and Bitcoin as scarce assets but with fundamentally different issuance schedules. While Bitcoin follows a fixed halving cycle leading to eventual maximum supply over more than a century, XRP’s path to max supply is accelerated by design and transaction economics.
Once XRP reaches its cap in the coming years, the total number of tokens in circulation is expected to decline gradually, given the continued burning of small amounts per transaction. If user adoption increases or remains steady, and no new supply is introduced, this could lead to a reduction in available tokens, potentially contributing to price appreciation through scarcity effects.
SMQKE’s tweet highlights a documented forecast that XRP will experience a significant shift in its supply model well before Bitcoin. This shift, combined with deflationary mechanisms, could position XRP for a market reaction tied to scarcity.
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 advised to conduct thorough 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.
Follow us on X, Facebook, Telegram, and Google News
