Why is the XRP price stagnating?

Recent XRP performance is puzzling: since the surge in November 2024, the price seems to be 'stuck' in place, unable to break through key resistance. There is ongoing heated discussion in the market, with renowned analyst José Luis Cava recently pointing out that the core issue lies in 'control.'

Resistance One: Ripple's 'Faucet' Effect - High Supply Concentration

Key Difference: Unlike Bitcoin miners producing output or Ethereum's gradual releases, XRP was entirely generated all at once at its inception, with a total of 100 billion, and will never be increased. Does this sound scarce? But the problem lies in the initial distribution.

Who is in control? Ripple Labs initially held 80% of XRP! Even by mid-2025, they still control about 42% of the total supply. About 35% is locked in a monthly release 'vault' escrow account, with about 7% readily available.

'Faucet' Monthly Release: Every month, Ripple has the right to release up to 1 billion XRP from escrow into the market. Imagine: a giant has the ability to launch a large amount of 'new' tokens into the market every month, how much influence does this have on circulation and price? This directly challenges the core spirit of cryptocurrency 'decentralization.' Cava warns that XRP's price fluctuations are often not the natural result of market buying and selling, but rather influenced by this 'big hand.'

Resistance Two: Institutions 'make a lot of noise but little rain' - Demand side is cooling.

Original Design Intent: XRP is aimed at fast, cheap international remittances, which should have been a major draw for banks and large institutions.

Harsh Reality: However, compared to Bitcoin being seen as digital gold and Ethereum's smart contract platform gaining institutional favor with ETFs and large fund allocations, XRP's institutional adoption has been slow, and actual demand has yet to explode.

Why is it cooling down?

Ripple's Cooperation 'Fog': Ripple often announces partnerships with various central banks, but specific details such as whether they are really using XRP and how much are often opaque, leading to market suspicion and distrust.

Regulatory Clouds: While Ripple has achieved some key victories in its lawsuit with the SEC, the overall uncertainty in the regulatory environment still deters large funds.


Big D's View: Structural barriers remain, making it difficult to change the sideways market pattern.

Summary:

For XRP's price to truly break through the current 'stagnation', at least one of these three major hurdles must be overcome:

Either Ripple substantially accelerates decentralization, such as significantly reducing control shares or changing the release mechanism,

Or a clear, large-scale, verifiable wave of institutional adoption occurs, such as major banks genuinely launching cross-border payments based on XRP.

Either Ripple significantly increases the transparency of its private operations or integrates or publicly discloses the operation of private ledgers.


$XRP
Follow Big D, with a professional team guiding you to accurately target swing points, keep up the rhythm to let your assets take off!
Big D steadily doubles down on trades, low leverage, private contracts.#Ripple