XRP’s price has remained subdued despite continued activity around the asset, and recent commentary helps explain the disconnect. According to Jake Claver, CEO of Digital Ascension Groupthe explanation lies further Ripple’s escrow issuance or retail behavior, pointing instead to structural factors that affect how the supply of XRP reaches the market.
How XRP Investors Sell Without Fearing the Market
Claver explained in a recent post on X that large XRP sales primarily occur through institutional channels such as OTC (over-the-counter) trading and dark pools which keep activities out of public view and not on public exchanges. He specifically pointed to platforms such as FalconX and Kraken’s dark pool infrastructure. These venues are designed for institutions, hedge funds and early stage investors who wish to move large positions without announcing their intentions in the open order books.
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This is important because public exchanges are very sensitive to large sales orders. When large sales occur in the stock market, they often cause prices to fall rapidly as other traders react. OTC tables work differently. They privately connect buyers and sellers, allowing XRP to change hands without directly affecting 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 effective. It enables them to gradually exit or rebalance positions while protecting the quality of execution. For the wider market, however, it creates a disconnect. Demand may exist, but as long as a stable supply is released through private channels, upward price momentum remains limited. This explains why XRP may struggle to break higher even during periods of positive mood or strong network-related narratives.
ETF demand is quietly depleting the same pool of liquidity
An important extension of Claver’s point did not come from the comments below his original post. A reader asked for a “best estimate” of when OTC tables might run out of stock. He answered that supply is shrinking every day, and ETFs are actively consuming available liquidity.
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This exchange is essential to understanding the bigger picture. ETFs typically do not buy XRP on public exchanges in a way that distorts the price. Instead, they obtain liquidity through OTC desks, the same channels that early stage investors use to sell. This means ETFs are steadily absorbing XRP which would otherwise remain available for silent distribution. Over time, this dynamic changes the structure of the market. As ETFs and other institutional products continue reduce OTC inventoryearly investors will have fewer opportunities to sell large positions without touching the public markets. When this happens, selling activity becomes more visible and price discovery returns to exchanges.
Until OTC supply decreases significantly, the price of XRP may remain capped despite continued demand. The key takeaway is clear: the current price decline is not a lack of interest in XRP, but a consequence of how and where early investors choose to sell.
Featured image created using Dall.E, chart from Tradingview.com
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