Billions of XRP About to Be Locked Up In Vaults. Here's the Latest

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At a time when price performance remains a point of frustration for many market participants, crypto commentator Zach Rector has directed attention to a different set of metrics he believes deserve closer examination.

In a recent post accompanied by a short video, Rector argued that large and growing amounts of XRP are being vaulted through exchange-traded products, digital asset treasury companies, and decentralized finance structures. His remarks focused less on short-term market movement and more on how XRP supply dynamics may be evolving behind the scenes.

Rector opened by acknowledging the apparent disconnect between price action and structural developments. While XRP’s price has remained under pressure, he stated that the quantity of XRP placed into vault arrangements tied to ETF-related products has continued to increase.

According to his figures, more than 800 million XRP have already been vaulted in connection with XRP ETFs, a level he said is rapidly approaching one percent of the total XRP supply. He emphasized that this trend has progressed independently of recent market volatility.

Projected Growth Across ETFs, DATs, and DeFi

Expanding on the data, Rector suggested that the current numbers represent an early stage rather than a plateau. He projected that this process will extend through 2026, with billions of XRP potentially being allocated across ETFs, digital asset treasury companies, and XRP-focused DeFi applications.

While he cautioned against prematurely declaring an immediate supply shock, he maintained that a forward-looking assessment supports the idea that circulating supply may become tighter over time as these mechanisms expand.

Rector noted that when these different forms of vaulting are considered together, the available circulating XRP may be lower than commonly assumed. His argument rested on aggregation rather than a single structure, proposing that the cumulative effect of ETFs, institutional treasury strategies, and DeFi participation could materially alter perceptions of supply availability.

Debate Over the Use of “Locked Up”

This exchange highlighted a recurring debate within digital asset markets regarding how vaulting, custody, and liquidity should be described. While Rector described these developments as reducing effective circulation, critics emphasized that financial products do not permanently remove assets from the market in the same way as irreversible mechanisms might.

Focus Shifts Toward Supply Visibility

Despite differing views on terminology, Rector’s central claim remained consistent. He argued that attention should not be limited to price movements alone, but should also include monitoring how XRP is allocated across emerging financial structures.

In his view, understanding where XRP resides and how it is utilized may become increasingly relevant as institutional products and on-chain systems continue to expand.

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