A BIS-related analysis suggests that greater institutional-style activity on the XRP Ledger may not create the XRP supply squeeze some holders anticipate. The key factor is transaction efficiency: a single transaction can authenticate thousands of datasets. As a result, usage can expand substantially without generating a correspondingly large increase in transaction fees being burned. This means that even if the network attracts more institutional activity, the amount of XRP removed from circulation through fee burns could remain small. The analysis, reported by CryptoSlate, therefore separates network adoption from the scale of potential supply reduction. Higher usage alone may not translate into enough burned XRP to produce the scarcity effect expected by some market participants.
