XRP Investors Warned: DCA May Become Unfeasible Soon

XRP investors are being cautioned as the rising demand among institutions could soon render dollar-cost averaging (DCA) strategies ineffective. Matthew Snider, Chief Investment Officer at Digital Wealth Partners, sounded the alarm following a major announcement from Trident Digital to launch a substantial XRP reserve fund.

Trident Digital, a Nasdaq-listed firm, recently revealed plans to raise $500 million through a mix of stock offerings and financial instruments to establish a dedicated XRP treasury. The initiative is expected to kick off later this year, pending regulatory approvals. In preparation, Trident is working with strategic partners and consulting investors to finalize acquisition terms and reserve setup logistics.

This move places Trident alongside a growing roster of publicly traded companies turning to XRP as a reserve asset. Other notable firms include Webus International, Wellgistics Health, and VivoPower, all of which are also committing major capital to accumulating XRP.

According to Snider, this surge in institutional interest has significant implications for retail investors. In a recent statement, he explained that as more corporate giants snap up large amounts of XRP, the circulating supply accessible to average investors will dwindle. This supply shock, he warns, could diminish the effectiveness of common investment tactics like DCA, which relies on regularly purchasing smaller amounts of an asset over an extended period.

“As more XRP gets locked away in corporate treasuries, the liquidity available for individual investors shrinks,” Snider noted. “This could make it almost impossible for smaller investors to gradually increase their holdings over time.”

While such institutional accumulation often paves the way for upward movement in crypto valuations, it may simultaneously create barriers for retail participants hoping to benefit from modest, recurring investments in XRP. For many, this is a call to action.

The concern over dwindling XRP supply has reignited conversation about how much XRP an individual should strive to own to significantly impact their financial future. Supporters point to comments from industry figures like Linda P. Jones, who called XRP one of the greatest opportunities for generating generational wealth. Echoing this sentiment, Alpha Lions Academy founder Edo Farina recommends a goal of holding at least 1,000 XRP to see meaningful gains.

Others, like influencer King Vale, believe the benchmark should be much higher—suggesting that 50,000 XRP is the minimum to aim for if one wants to truly position themselves for life-changing returns. At current valuations, this would translate to an investment exceeding $100,000, a figure that understandably excludes many everyday investors.

This disparity has led to pushback from the community, with those like Xena challenging the narrative that only large XRP holdings can yield wealth. Critics argue that such high thresholds are not evidence-based and often serve to intimidate or exclude newcomers.

Related: Expert Advice: Sell XRP If You’re Confused

Despite these debates, the prevailing tone in the XRP community remains one of cautious urgency. Analysts and thought leaders alike are urging investors to take strategic action now—while availability remains reasonably accessible. With institutional adoption accelerating, the window for building a meaningful XRP position through steady accumulation may soon close.