mXRP Sparks XRP DeFi — WisdomTree Anticipates Upcoming XRP Supply Shock Ahead of Bitcoin
mXRP Launch and Utility: The introduction of mXRP, a liquid-staking token for the XRP ecosystem, allows holders to stake their tokens while maintaining liquidity, potentially unlocking value from XRP's idle supply and integrating it into decentralized finance (DeFi) strategies.
Yield Generation and Capital Efficiency: mXRP offers a target return of 6-8% APY through various DeFi activities, enhancing capital efficiency for XRP holders who previously held dormant tokens without generating returns.
Supply Shock Implications: Investment firm WisdomTree suggests that XRP may experience a supply shock sooner than Bitcoin due to its fixed supply cap of 100 billion coins, which could lead to increased scarcity and heightened investor interest.
Shift in XRP's Role: As XRP approaches its supply cap, it may transition from being viewed solely as a utility token to a more attractive digital asset, especially with the launch of mXRP positioning it as a key player in cross-chain DeFi and liquidity generation.
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