Crypto expert Zach Rector has raised the possibility of XRP undergoing a supply shock due to a potential massive token burn, which could be on the horizon. Such development will undoubtedly provide a major boost for the crypto token, considering the impact that token burns have on a crypto’s value.
How More XRP Could Be Burned
Zach Rector mentioned in an X (formerly Twitter) post that there would be an XRP supply shock. He predicts that this will happen as more XRP is burned with the creation of XRP bridges and an increase in XRP lockups. He also alluded to Decentralized Finance (DeFi) activity on the XRP Ledger (XRPL) as another that could increase the XRP burns.
Rector made this statement while reacting to an update from Sologenic, a tokenization platform on the XRP Ledger, in which they mentioned that over 1.6 million XRP have been bridged to the Cosmos ecosystem using the XRPL Coreum Bridge. Following Rector’s statement, another X user remarked that there weren’t any added benefits to XRP being bridged to other blockchains.
This was in direct criticism of Rector’s statement, which suggested that creating more bridges could help increase XRP’s value. Meanwhile, another X user suggested that even if the 1.6 million XRP were burned, that is unlikely to significantly impact XRP’s price, considering the token’s…
