The price of XRP has remained low despite steady activity around the asset, and recent commentary helps explain the disconnect. According to Jake Claver, CEO of Digital Ascension Groupthe explanation lies beyond that Ripple’s deposit releases or retail behavior, but instead point to structural factors that influence how XRP supply reaches the market.
How XRP Investors Sell Without Scaring the Market
Clover explained in a recent post on over-the-counter (OTC) transactions and dark pools that keep activities out of public view, rather than on public exchanges. He specifically pointed to platforms like FalconX and Kraken’s dark pool infrastructure. These locations are intended for institutions, hedge funds and early investors who want to move large positions without disclosing their intentions on open order books.
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This is important because public exchanges are very sensitive to large sales orders. When large selloffs occur on an exchange, they often cause rapid price drops as other traders respond. OTC counters work differently. They match buyers and sellers privately, allowing XRP to change hands without immediate impact on visible market prices. As a result, significant amounts of XRP can be sold while the chart appears relatively stable.
For early investors who accumulated XRP at much lower prices years ago, this approach is very efficient. It allows them to gradually exit or rebalance positions while protecting execution quality. For the broader market, however, it creates a disconnect. There may be demand, but as long as a stable supply is made available through private channels, the upward price momentum remains limited. This explains why XRP may struggle to break higher even during periods of positive sentiment or strong network-related stories.
Demand for ETFs is quietly depleting the same liquidity pool
An important extension of Claver’s point did not come from a comment below his original post. A reader asked for a “best estimate” of when OTC desks might become unavailable. He responded that supply is shrinking every day, with ETFs actively depleting available liquidity.
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This exchange is critical to understanding the bigger picture. ETFs typically do not purchase XRP on public exchanges in a way that distorts the price. Instead, they obtain liquidity through OTC desks, the same channels early investors use to sell. This means ETFs are steadily absorbing XRP that would otherwise remain available for silent distribution. Over time, these dynamics change the market structure. While ETFs and other institutional products continue to do so Preparing OTC inventoriesearly investors will have fewer opportunities to sell large positions without hitting the public markets. When that happens, selling activity becomes more visible and price discovery shifts back to the exchanges.
Until OTC supply tightens significantly, XRP’s price may remain capped despite continued demand. The key takeaway is clear: the current price suppression is not a lack of interest in XRP, but a consequence of how and where early investors choose to sell.
Featured image created with Dall.E, chart from Tradingview.com