Foreign media reports that analyst Jake Claver, in a recent interview with MissCrypto, reiterated his so-called "XRP domino effect." He linked global liquidity changes, stablecoin regulation, tokenization, and pressure on financial markets, arguing that these factors could reshape the crypto market structure in the coming years and increase XRP's visibility.
The return of yen carry trades is considered the first step.
He believes the first domino to fall is the pullback in yen carry trades. For a long time, low-interest-rate yen funds have been lent out and flowed into global stock, bond, real estate, gold, and cryptocurrency markets. If Japanese interest rates continue to rise, some of these funds may be forced to liquidate and flow back to Japan, thereby draining global market liquidity and amplifying volatility.
In an interview, Claver stated that the system has accumulated a large amount of funds over the years, and if the drawdown accelerates, risky assets may also come under pressure.
Stablecoins and leveraged products may be affected by collateral damage.
In his analysis, the second domino is the cascading effects of tightening liquidity on financial markets. Besides stocks, bonds, and crypto assets potentially facing simultaneous pressure, stablecoin reserves may also be subject to stricter scrutiny during periods of market stress.
He specifically mentioned Tether, stating that during periods of uncertainty, investors may focus more on the quality and transparency of stablecoin reserves. He also believes that as regulations tighten, compliant stablecoins may further expand their market share in the coming years.
At the same time, if market liquidity continues to tighten, leveraged positions in Bitcoin and other crypto products may face greater pressure.
The need for real-time settlement is seen as an opportunity for XRP.
Claver believes the third domino is the rising demand from the financial system for faster settlement infrastructure. Traditional clearing systems are slower, and this delay itself can pose additional risks when market pressures intensify.
Against this backdrop, he judged that financial institutions might be more willing to use blockchain networks capable of transferring liquidity in real time. According to him, one of XRP's design goals is to facilitate faster cross-border value transfers and serve inter-institutional settlement scenarios.
He also cited tokenization, stablecoin expansion, and the development of on-chain financial infrastructure as background factors that could drive XRP adoption, and mentioned the possibility of more XRP ETFs emerging in the future, leading to a rotation of funds.
However, the report also points out that this theory is still speculative at present. Its core premise is not the popularity of retail transactions, but whether institutional adoption, improved settlement efficiency, and liquidity management needs have truly shifted to relevant on-chain infrastructure.
