The XRP community is no stranger to bold predictions. But this time, one analyst is pointing to a very specific set of upgrades that could completely change demand for XRP – and he calls it the “real reason” the token could explode.
Vincent Van Code, a well-followed voice on X, shared that the upcoming rollout of permissioned decentralized exchanges (DEXs) on the XRP Ledger could create a massive supply squeeze. His reasoning is simple: if institutions move in, retail supply will dry up.
What you'll learn 👉
Why Permissioned DEXs Could Change Everything
According to Van Code, once the new permissioned DEXs go live, banks and funds will need huge XRP stacks to power stablecoin corridors and foreign exchange rails. These institutions won’t be trading on public exchanges – instead, they’ll buy XRP directly from the open market, lock it into liquidity pools, and earn automated market-making fees.
That means less XRP circulating among retail investors, which could create the perfect scarcity setup. With supply thinning and institutional demand rising, the price impact could be explosive.
🚨🚨 XRP: The REAL reason why I can forecast a huge XRP pump
— Vincent Van Code (@vincent_vancode) September 4, 2025
As you know, I love coding, and love reading about DLT. For me, everything that ha happened for the past few years has lead to this CRITICAL capability.
If there was ever a switch that would be flipped, my money…
The Three Amendments Driving It
Van Code highlights three XRP Ledger amendments that make this vision possible:
Credentials (XLS-70): This gives wallets signed, on-chain identities proving they meet KYC and AML standards. That compliance layer is key for institutions.
Permissioned Domains (XLS-80): Institutions can build gated domains where only verified wallets can interact, creating a safe, regulated environment separate from retail markets.
Permissioned DEX: The centerpiece – a compliant trading venue where banks and funds can run stablecoin and FX trades with deep liquidity while keeping regulators satisfied.
Together, these amendments lay the foundation for an institutional-grade XRP ecosystem.
Read also: Experts Explain XRP Price Path to Triple Digits and the “Perfect Storm” That Could Take It There
Why This Matters for Retail Holders
Van Code insists this isn’t about shutting retail out. Instead, it’s about making existing XRP holdings far more valuable by restricting fresh supply. The less XRP available on the open market, the greater the upward pressure on price when institutional demand hits.
In his words: “Utility + regulation = price detonation. XRP isn’t just a token anymore. It’s about to become the fuel of global finance.”
The big question is whether these amendments will roll out smoothly and whether institutions will actually adopt them at scale. If they do, Van Code’s prediction of a “scarcity squeeze” has logic behind it. We’ve seen how liquidity can move prices fast in crypto, and XRP has one of the strongest utility narratives out there.
Still, execution is everything. If Ripple and the XRP Ledger community deliver, retail holders could find themselves holding one of the most strategically positioned assets in the entire market.
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