Expert Says This Ripple Update Sets Up the Massive XRP Supply Shock

A significant update in the ongoing SEC v. Ripple case is reigniting conversations around a looming XRP supply shock. Earlier today, Judge Analisa Torres denied a joint request from the SEC and Ripple seeking to dissolve a prior court injunction and reduce Ripple’s financial penalty. According to Jake Claver, this decision reinforces the setup for a massive XRP supply squeeze, one that could have dramatic implications for the asset’s price and availability. Judge Torres Denies Ripple-SEC Motion In the court order filed on June 26, Judge Torres rejected the motion for an indicative ruling, which would have dissolved a permanent injunction preventing Ripple from violating securities laws and reduced the fine imposed on the company. The Set UP for the MASSIVE Supply Shock continues.. https://t.co/H3L0zjj4cD — Jake Claver, QFOP (@beyond_broke) June 26, 2025 The motion, tied to ongoing settlement negotiations, was central to Ripple’s efforts to fully resolve the case and move forward without ongoing legal uncertainty. With the court’s denial, the prior restrictions remain in place. Ripple is still bound by the terms of the injunction, including limitations on the use of XRP held in escrow. This outcome delays the company’s ability to access or distribute billions of XRP that have been locked for years, significantly limiting the token’s circulating supply. Jake Claver: Legal Deadlock Tightens Supply Outlook Reacting to the development, Jake Claver, founder of QFOP and a respected voice in the digital asset space, posted on X: “The setup for the MASSIVE supply shock continues.” Claver has consistently highlighted how Ripple’s legal constraints are reducing available market liquidity for XRP. Claver’s insight builds on the idea that with Ripple unable to freely unlock or distribute escrowed XRP, and with decreasing exchange balances indicating steady accumulation, a major supply crunch is forming beneath the surface. This shock would be amplified if, or when, Ripple gains legal clearance to resume its full operations, potentially unleashing demand from institutional partners and cross-border payment corridors. We are on twitter, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) July 15, 2023 XRP Exchange Balances Continue to Shrink Recent data further supports Claver’s thesis. On-chain analytics have shown that XRP balances on major centralized exchanges like Binance and Coinbase have steadily declined over the past 12 months. Long-term holders and private wallets appear to be absorbing available liquidity, while Ripple’s legal constraints mean no fresh supply is entering the market from escrow. In the past, Ripple would unlock up to 1 billion XRP each month , re-locking what wasn’t used. However, due to the ongoing lawsuit and injunctions, this practice has been largely frozen, further compounding the scarcity. What Happens Next? Judge Torres’ ruling doesn’t end the case but halts a key procedural step toward settlement. Until a new agreement is accepted by the court, Ripple remains restricted, and XRP’s available supply will continue to tighten. For XRP supporters and market analysts like Claver, this legal bottleneck is more than a procedural delay, it’s a setup for a dramatic supply and demand imbalance. If Ripple is ultimately cleared to resume its full market operations, the sudden influx in demand, especially from Ripple’s On-Demand Liquidity (ODL) partners , could collide with severely limited supply, triggering what Claver and others describe as a “massive supply shock.” Until then, the legal stalemate only sharpens the edge of anticipation. 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 urged to do in-depth 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 Twitter , Facebook , Telegram , and Google News The post Expert Says This Ripple Update Sets Up the Massive XRP Supply Shock appeared first on Times Tabloid .

Source: TimesTabloid