Analysts predict an XRP supply shock, driven by Evernorth’s IPO and open-market purchases.
Evernorth Holdings is quickly becoming a major player in the XRP space, moving closer to its $1 billion goal.
Backed by Ripple, SBI, and other top investors, the company’s growing presence has caught the attention of the crypto community and has also sparked speculations of a possible supply shock and long-term impact on XRP’s price.
Evernorth Holdings has now accumulated roughly 388.7 million XRP, valued at over $1 billion at current prices. This places Evernorth among the largest institutional holders of XRP.
Data from XRPSCAN shows that the wallet has received XRP from Uphold, Coinbase, and Gemini. Chris Larsen also confirmed transferring 50 million XRP from his wallet to invest in Evernorth’s treasury deal.
Evernorth is now close to the $1 billion funding mark, with $947.2 million already invested in its treasury. Notably, in just four days, the firm has gained about $46 million in unrealized profits. Cryptoquant analyst notes that its average XRP purchase price sits around $2.44, which could mark a key level for Ripple’s future price action.
Last week, it announced its public launch and a business combination agreement with Armada Acquisition Corp II, a publicly traded SPAC. It follows a strategy similar to other digital asset treasuries like TRON Inc.
Evernorth aims to give investors an easy and transparent way to invest in XRP through a publicly traded company. Unlike a passive ETF, it aims to increase XRP holdings per share over time by engaging in institutional lending, liquidity provision, and DeFi yield opportunities.
The deal is led by SBI, Ripple, Rippleworks, and top crypto and fintech investors like Pantera Capital, Kraken, and GSR, and Chris Larsen.
Evernorth’s IPO is expected to raise billions of dollars, which will then be used to buy XRP from the open market.
Analysts suggest that this would create a major “supply shock”, where the available supply of XRP sharply decreases while demand remains high, which could drive up its price. Moreover, with the potential launch of an XRP ETF, the combined effect could cause a major surge in its value.
@XRP_Liquidity, an X account that closely tracks major XRP movements, has noted a significant uptick in Ripple’s activity this month.
According to the account, Ripple typically transfers under 300 million XRP each month to support On-Demand Liquidity (ODL) operations, exchange-traded products (ETPs), and trusts. However, this month’s total is expected to reach around 650 million XRP , which is the highest ever recorded. Notably, Evernorth alone has accounted for 388 million XRP of that total.
XRP is currently trading at $2.66, down 1% in the last 24 hours, but up 5% over the past week. The 24-hour trading volume stands at $3.9 billion, a 20.7% increase from the previous day, indicating a rise in market activity.
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