mXRP Ignites XRP DeFi — WisdomTree Predicts Imminent XRP Supply Shock Before Bitcoin

XRP’s DeFi Leap: How Liquid-Staking Token mXRP Expands Utility Recent developments in the XRP ecosystem mark a turning point: the launch of mXRP, a liquid-staking token, may substantially deepen XRP’s role in decentralized ￰0￱ analyst Doshsai argues that this innovation could unlock latent value in XRP’s large idle supply and bring it firmly into DeFi’s reward ￰1￱ is mXRP and Why It Matters Unveiled at XRPL Seoul 2025 by Midas and Interop Labs, mXRP is the first-ever liquid staking product built for the XRP ￰2￱ allows XRP holders to stake their tokens without surrendering liquidity: instead of locking up dormant XRP, users mint mXRP, a derivative representation that can be deployed into DeFi ￰3￱ audited smart contracts on the XRPL EVM sidechain, it bridges in native XRP via Axelar, wraps it, and issues mXRP under a tokenized certificate ￰4￱ & Use-Cases mXRP isn’t just theoretical utility, it promises ￰5￱ target return is 6-8% APY, depending on the underlying strategy, suhc as market-making, liquidity provisioning, and ￰6￱ is significant in that many XRP tokens have been dormant, held in wallets without generating any ￰7￱ mXRP, capital efficiency could improve across the board for ￰8￱ into DeFi & Cross-Chain According to Doshsai, what’s especially transformative is that mXRP serves as a bridge between XRP’s longstanding strength in payments, settlement, and cross-border and what DeFi has been doing on chains, such as Ethereum and ￰9￱ integration to XRPL’s EVM sidechain and Axelar’s bridging capabilities makes mXRP usable in DeFi ￰10￱ means holders can move beyond storing XRP into using it for yield, collateral, swaps, liquidity pools, and other financial ￰11￱ Faces Imminent Supply Shock Ahead of Bitcoin, Says WisdomTree According to crypto observer SMQKE, investment firm WisdomTree has highlighted that a major supply shock for XRP could arrive long before Bitcoin faces the same ￰12￱ Bitcoin’s fixed supply of 21 million units will not be fully mined until around the year 2140, XRP’s total supply cap is expected to be reached within the next few years, creating significant implications for the digital asset market.

A supply shock happens when an asset’s availability contracts while demand stays steady or climbs, driving prices ￰13￱ has long leaned on this narrative as 'digital gold,' but XRP’s quicker path to max supply could push it into the spotlight even ￰14￱ Bitcoin’s proof-of-work mining, XRP was fully pre-mined at inception with a fixed cap of 100 billion ￰15￱ supply is released through Ripple Labs’ monthly escrow system, most of which is already in ￰16￱ the escrow reserves decline, WisdomTree notes XRP could encounter scarcity far sooner than ￰17￱ XRP reaches its supply cap within the next few years, the resulting scarcity could shift investor perception, drawing institutional interest and fueling ￰18￱ Bitcoin has long owned the store-of-value narrative through its halving cycles and fixed cap, XRP’s faster path to maximum supply could redefine it as more than a utility ￰19￱ While Bitcoin’s scarcity narrative stretches over the next century, XRP’s supply timeline is rapidly approaching its critical juncture.

A looming supply shock could redefine XRP’s role in the crypto ecosystem, shifting it from a utility-driven token to a scarce digital asset with heightened investment appeal. Meanwhile, the launch of mXRP places XRP at the core of liquidity, yield generation, and decentralized ￰20￱ allowing holders to earn returns while keeping assets active in DeFi, it marks a shift from passive speculation to tangible financial ￰21￱ successful, mXRP could elevate XRP beyond its role as a settlement token, positioning it as a cornerstone of cross-chain DeFi.