What to Know:
- XRP liquidity on Binance may be tightening, potentially leading to price increases.
- OTC markets for XRP are also experiencing reduced supply as investors prefer holding.
- Large XRP transactions are typically handled via OTC to avoid market disruption.
XRP is garnering attention as a key community figure suggests a potential supply crunch on major exchanges like Binance, which could trigger a notable price surge. The analysis points to a scenario where dwindling XRP availability may amplify the impact of substantial buy orders. This situation highlights the evolving dynamics of XRP trading and investment strategies.
Some analysts are noting that the available XRP supply on exchanges may be lower than expected. The argument is that if Binance holds only a fraction of its typical XRP reserves, even moderate buying pressure could lead to significant price movement. This is a factor for investors to consider, especially given the broader market’s sensitivity to supply and demand.
The role of over-the-counter (OTC) desks in XRP transactions is crucial for large investors seeking to avoid market volatility. These private markets facilitate substantial XRP trades without influencing public exchange prices. However, there are suggestions that OTC supplies are also diminishing, potentially leading to increased competition for available XRP and upward price pressure.
Not at all. Let’s say you want to sell 5M XRP.
If you tried to do that on order book, you would tank the price and lose 5 to 10%.
So you tell the “dealer”, that you want to sell 5M XRP at a price which might be at or below market.
The dealer then pairs you up with some dude…
— Vincent Van Code (@vincent_vancode) October 27, 2025
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The XRP Ledger was designed to address issues of liquidity and transaction speed, making these factors particularly relevant. As the crypto market matures, the interplay between exchange liquidity, OTC markets, and institutional investment will likely shape XRP’s price trajectory. Investors should monitor these dynamics closely to anticipate potential shifts in market conditions.
Source: Original article
