WisdomTree Predicts XRP Will Experience a Supply Shock Before Bitcoin
XRP's Supply Trajectory: A recent observation by crypto researcher SMQKE highlights that XRP is set to reach its maximum supply in the next few years, contrasting with Bitcoin, which will not reach its cap until around 2140. This positions XRP uniquely in the digital asset market.
Deflationary Mechanism: XRP's transaction fees are burned, creating a deflationary effect that has already removed approximately 12 million XRP from circulation. This mechanism, combined with Ripple's escrow system, ensures that XRP's supply will contract over time, potentially increasing its value as demand grows.
Comparative Analysis with Bitcoin: The WisdomTree report emphasizes that while both Bitcoin and XRP are scarce, XRP's supply shock will occur much earlier, allowing it to grow in value before Bitcoin's supply diminishes.
Investment Strategy: The report suggests that holding both XRP and Bitcoin can provide investors with a balanced risk profile, leveraging Bitcoin's reputation as a store of value alongside XRP's efficiency in payments.
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