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5 Shocking Drivers Behind XRP Price Suppression in 2025

5 Shocking Drivers Behind XRP Price Suppression in 2025
5 Shocking Drivers Behind XRP Price Suppression in 2025

Key Points

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

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

At the heart of the theory is Rippleโ€™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, Rippleโ€™s CTO has clarified that their On-Demand Liquidity (ODL) transactions donโ€™t impact the open market price.

Further suspicion surrounds a few small wallets holding large XRP amounts. When these wallets move coins, XRPโ€™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. โ€œSome believe big banks are accumulating XRP quietly while spreading doubt,โ€ the user noted. The idea? Keep prices down before XRPโ€™s mainstream adoption drives up demand.

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.

โ€œRipple does not own 43% of XRP supply,โ€ Morgan explained. According to CoinMarketCap, the circulating supply excludes Rippleโ€™s escrowed holdings, meaning Ripple controls far less of the market than many assume.

Morgan also pointed out that Rippleโ€™s monthly XRP sales from escrow represent less than 1% of the tokenโ€™s monthly trading volumeโ€”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. Rippleโ€™s defense even included expert testimony showing XRPโ€™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 XRPโ€™s price is being artificially held down continues.

Broader Market Trends Could Be Weighing on XRP

Itโ€™s also essential to look beyond Ripple and XRP itself. Broader crypto market trends could be influencing XRPโ€™s sluggish price.

For instance, Ethereumโ€™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 Sunโ€™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 Arizonaโ€™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 XRPโ€™s price struggles may be more about evolving market conditions than direct suppression.

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Abhijeet
Abhijeet is a Web3 and crypto writer who brings blockchain concepts to life with simple, engaging, and SEO-driven content. From DeFi and NFTs to emerging blockchain trends, he crafts stories that resonate with readers and build authority for Web3 brands.

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