XRP's Deflationary Model and Growing Institutional Interest: A Perfect Storm for Cryptocurrency Adoption

Researcher SMQKE highlights XRP's deflationary model, where a small portion of the token is permanently destroyed with every transaction processed on the XRP Ledger, leading to a shrinking supply. This built-in mechanism distinguishes XRP from other cryptocurrencies and reinforces long-term scarcity. Growing institutional interest and adoption could strengthen XRP's scarcity and enhance its long-term valuation potential. ONDO warns the SEC about Nasdaq's move amid XRP supply concerns.

In a significant move that underscores the growing institutional interest in cryptocurrencies, Evernorth, a new crypto venture backed by digital asset firm Ripple, is set to raise over $1 billion in proceeds through a merger with blank-check firm Armada Acquisition Corp II, according to an Investing.com report. The deal, expected to close in the first quarter of 2026, will create the largest XRP publicly traded treasury company.

Evernorth's digital asset treasury will focus on accumulating XRP, a token linked to Ripple and the fifth-largest cryptocurrency by market cap, according to data from CoinGecko. The move comes months after Wall Street’s top regulator ended a high-profile crypto lawsuit, which accused Ripple of selling unregistered securities to institutional investors, as reported by Investing.com.

The deflationary model of XRP, where a small portion of the token is permanently destroyed with every transaction processed on the XRP Ledger, distinguishes it from other cryptocurrencies and reinforces long-term scarcity. Growing institutional interest and adoption could strengthen XRP's scarcity and enhance its long-term valuation potential, according to a TradingView article.

The deal saw participation from Ripple co-founder Chris Larsen and digital asset firms Pantera Capital and Kraken, which have a track record of funding such strategies. Japanese firm SBI, previously affiliated with SoftBank, is providing $200 million of the raise in exchange for equity, per the Investing.com report.

On the other hand, researcher SMQKE highlights XRP's deflationary model, while ONDO warns the SEC about Nasdaq's move amid XRP supply concerns. As scores of companies continue to wrap crypto assets into equity, concerns are mounting over the spillover impact of a correction in the equities markets. Earlier this month, crypto assets suffered from their largest selloff ever after U.S. President Donald Trump escalated his trade war with China, a trend discussed in the Investing.com coverage.

XRP's recent market sentiment has shifted towards optimism, with increased interest and activity observed within the XRP sector. XRP institutional volume has approached $2 billion in inflows, reflecting significant activity among large investors in the market. Veteran trader Peter Brandt has expressed a bullish outlook on XRP, marking a notable change from his earlier warnings about potential declines, as noted in the TradingView article.

In other news, Apollomics Inc. changed its independent auditor and confirmed its continued Nasdaq listing. According to an Apollomics 6-K filing, the company dismissed Grant Thornton LLP and approved Marcum Asia CPAs LLP as auditor, effective immediately. Grant Thornton’s 2023 and 2024 reports had no adverse opinions, and the company reports no disagreements through October 13, 2025. A material weakness disclosed as of December 31, 2023 was remediated during 2024. Nasdaq notified the company it is in compliance; the appeal hearing was cancelled and the securities will remain listed.