5 Shocking Drivers Behind XRP Price Suppression in 2025

Key Points

• 5 Shocking Drivers Behind XRP Price Suppression in 2025
• Ripple’s large XRP holdings raise supply concerns
•  Allegations of market manipulation lack hard evidence
  
•  Small wallets trigger price drops, fueling speculation
  
•  Attorney Bill Morgan debunks suppression theories

The XRP community is once again deep in debate. Despite Ripple’s legal victory over the SEC, XRP’s price remains stubbornly low. Now, a recent post from a pseudonymous user has highlighted five potential drivers that might be keeping the token’s value suppressed.

At the heart of the theory is Ripple’s massive XRP stash. The company holds over 43 billion XRP in escrow, releasing small amounts monthly. Critics argue this steady release controls supply growth and could prevent prices from rising too quickly. However, Ripple’s CTO has clarified that their On-Demand Liquidity (ODL) transactions don’t impact the open market price.

⚠️🚨WHAT DAMAGE DID THE SEC REALLY DO TO XRP’S PRICE?

It didn’t just slow XRP down — it stole years of growth.

While the market soared, XRP sat sidelined.

The damage? Deeper than most realize.🧵👇🏻 pic.twitter.com/fTO0x6uBfv

— All Things XRP (@XRP_investing) May 1, 2025

Further suspicion surrounds a few small wallets holding large XRP amounts. When these wallets move coins, XRP’s price often dips, sparking concerns about manipulation. But so far, no conclusive evidence proves deliberate interference.

The post also referenced a scientific study revealing a -0.73 negative correlation between transaction structures and price changes. While this suggests complex market dynamics at play, it stops short of confirming price suppression.

One popular theory suggests that major financial institutions might be keeping prices low. “Some believe big banks are accumulating XRP quietly while spreading doubt,” the user noted. The idea? Keep prices down before XRP’s mainstream adoption drives up demand.

1️⃣ The Big Question.

The SEC lawsuit clearly impacted XRP’s price.

But what if that’s not the only force keeping it down?

Let’s dig into the hard data, expert takes, and hidden signals.

— All Things XRP (@XRP_investing) May 5, 2025

Adding fuel to the fire, data shows that in 2017, community clusters shrank just before major price drops. Certain nodes dominated the XRP network, raising more questions about market fairness.

But not everyone agrees with these gloomy views.

Legal Experts Push Back on XRP Manipulation Claims

Attorney Bill Morgan, a respected voice in the XRP legal community, has stepped in to debunk these suppression theories.

“Ripple does not own 43% of XRP supply,” Morgan explained. According to CoinMarketCap, the circulating supply excludes Ripple’s escrowed holdings, meaning Ripple controls far less of the market than many assume.

This post in the thread is over generalised to begin with. Firstly, Ripple does not own 43% of supply. even @CoinMarketCap publishes that the circulating supply (excluding what ripple holes outside escrow) is 58.5%.

Secondly, what Ripple releases from escrow and sells each month… https://t.co/XnTBuHaZJ7

— bill morgan (@Belisarius2020) May 5, 2025

Morgan also pointed out that Ripple’s monthly XRP sales from escrow represent less than 1% of the token’s monthly trading volume—a figure too small to exert major downward pressure. Even more importantly, these escrow releases have a decreasing effect over time.

Referring back to the SEC lawsuit, Morgan emphasized that after an 18-month investigation, regulators found no evidence of Ripple manipulating XRP prices. Ripple’s defense even included expert testimony showing XRP’s price movements generally mirrored the broader crypto market, especially Bitcoin and Ethereum.

Still, even with legal assurances, doubts remain in some corners of the XRP community. For now, the debate over whether XRP’s price is being artificially held down continues.

Broader Market Trends Could Be Weighing on XRP

It’s also essential to look beyond Ripple and XRP itself. Broader crypto market trends could be influencing XRP’s sluggish price.

For instance, Ethereum’s recent Pectra upgrade (read more) has shifted attention and capital toward the ETH ecosystem. Many investors are favoring platforms that offer cutting-edge scaling and efficiency improvements.

Moreover, regulatory uncertainty and market manipulation fears have spurred innovations in crypto custody, like Justin Sun’s recent collaboration with First Digital Trust (details here). These developments show that institutional players are preparing for long-term adoption, even if prices remain volatile in the short term.

Investors are also becoming more cautious following a rise in crypto phishing scams this year (full report). The increased risks may deter retail investors from taking large positions in tokens like XRP.

Some experts believe that upcoming regulatory changes and ideas like Arizona’s proposal for a state Bitcoin reserve (learn more) could eventually lead to positive market shifts. Others think XRP may benefit if blockchain networks simplify their architecture, as discussed in the Ethereum simplification proposal (explained here).

All these factors suggest XRP’s price struggles may be more about evolving market conditions than direct suppression.