Analysts Phil Kwok and Pumpius suggest that a supply shock in XRP could drive its price higher. They highlight that DeFi systems, spot ETFs, and institutional holdings are significantly reducing XRP's circulating supply. DeFi platforms lock XRP in liquidity pools and staking, while ETFs have acquired $906 million worth of XRP. Additionally, institutions hold XRP for settlement and treasury purposes, and Ripple's escrow management limits new supply. As more XRP is absorbed into these systems, the reduced availability could lead to a price increase.