The XRP supply shock could be closer than many investors expect, according to Versan Aljarrah, co-founder of Black Swan Capitalist. In a recent podcast episode, Aljarrah emphasized the importance of holding XRP, warning that selling now could mean missing out on massive potential gains if the digital asset’s supply becomes limited in the future.

Why Experts Predict an Incoming XRP Supply Shock

Versan Aljarrah told his audience that an XRP supply shock is not a hypothetical scenario—it’s inevitable. He argued that XRP’s future role in facilitating institutional liquidity and global payments, particularly through Ripple’s partnerships with financial entities, will eventually outpace token availability among retail holders.

He shared this insight during a recent interview, asserting that when XRP’s real-world use accelerates, retail investors may be left fighting for scraps as the token becomes increasingly scarce. “We are heading into a period where huge institutions will demand XRP for on-demand liquidity, and that’s when the real squeeze happens,” Aljarrah noted.

Retail Investors Told to Hold Strong

Aljarrah’s core message to retail investors was clear: do not let go of your XRP holdings. He believes that the average investor underestimates the scale of XRP’s long-term utility and institutional adoption. “This isn’t just speculation—it’s being architected,” he explained, referencing large financial players making moves toward Ripple’s payment solutions.

He cautioned that as these firms require XRP for transactions and liquidity coverage, the circulating supply could diminish significantly. “When XRP is locked into systems that enable real-time cross-border value exchange, what’s left for retail could dry up fast,” he warned.

Ripple’s Strategic Progress Underpinning Market Confidence

Ripple has actively positioned XRP as a bridge currency for international settlements. The company’s recent advances in agreements with governments, banks, and fintech ecosystems have bolstered investor confidence. Their On-Demand Liquidity (ODL) service, in particular, channels XRP to ensure faster, less expensive international transfers—potentially tightening available supply.

With Ripple focusing on utility at scale, experts like Aljarrah say that available XRP in the open market could gradually decline. This creates an imbalance where demand from institutions increases as supply shrinks, triggering a classic supply shock scenario.

Visual representation of a rising demand for XRP amid a shrinking supply.

Black Swan Capitalist’s Perspective

Founded by Versan Aljarrah, Black Swan Capitalist is known for its contrarian yet data-driven takes on cryptocurrency. The platform encourages strategic, long-term holding of value-bearing assets like XRP. Aljarrah’s warning aligns with the firm’s repeated message: prepare now for market dynamics that favor informed investors.

He suggests that the ultimate value of XRP could be linked to its scarcity, particularly if major institutions adopt it without increasing its minting. Given its fixed supply cap of 100 billion tokens—with Ripple holding a large portion in escrow—the possibility of a crunch seems realistic.

“Never sell your XRP,” he reiterated. “Situations like this don’t come often, and when the shock hits, those with patience could witness gains unlike anything we’ve seen in crypto before.”

Related: XRP Price: $12M Max Pain for Bears

Final Thoughts

As the global financial system inches toward digital transformation, XRP’s real-world utility continues to place it at the center of cross-border innovation. According to experts such as Aljarrah, a supply shock isn’t just likely—it’s expected. Holding XRP through uncertain periods may position investors for significant upside if market conditions evolve in line with institutional trends.