XRP Faces Crucial Test as Institutional Demand Meets Recurring Supply

XRP is entering its final days of September with two major catalysts that could test whether institutional demand is strong enough to absorb the token's recurring supply.

The first catalyst is the shareholder vote on September 30 for Armada Acquisition Corp. II, which proposes a business combination with Evernorth. If approved, this deal could create a Nasdaq-listed XRP treasury company under the XRPN ticker.

Evernorth's investors include Ripple, SBI Group, Pantera Capital, Kraken, Arrington Capital, and GSR, all of whom intend to deploy capital across the XRP economy and grow XRP per share over time.

The second catalyst is Ripple's monthly escrow mechanism, which makes up to 1 billion XRP available on October 1. However, it's essential to note that this figure should not be treated as 1 billion tokens automatically entering circulation.

Ripple explains that the escrow establishes an upper limit on newly available XRP, with unused tokens returned to new escrow contracts for later release.

XRP has been trading around $1.48 after reaching above $1.62 last week, leaving $1.60 as a key hurdle.