XRP Rally Shows Organic Growth Amid Bitcoin Liquidity Surge

The current XRP rally has drawn significant attention as analysts and community members highlight its seemingly organic momentum, especially when compared to Bitcoin’s surge, which appears closely tied to Tether’s recent activities.

Bitcoin’s latest rise to an all-time high north of $118,000 has reignited debates about the driving forces behind such meteoric gains. This fresh upswing coincided with another $1 billion USDT mint by Tether—the second such issuance within one week. The correlation has prompted speculation that Bitcoin’s momentum could be fueled more by strategic liquidity injections than organic market demand.

Tether CEO Paolo Ardoino addressed the mint via social media, clarifying that the new tokens, created on the Tron network, serve replenishment needs and haven’t yet entered active circulation. He emphasized they’d only be deployed as needed for issuance or cross-chain liquidity requirements. However, the repetitive timing of these mints raises questions, especially given their historical alignment with sudden Bitcoin jumps. Critics allege that such stablecoin creation is tantamount to manufacturing capital out of thin air for Bitcoin price support.

This has led the XRP community to position their asset differently. They argue XRP’s recent gains stem from real market forces, not artificial liquidity. The disconnect between Bitcoin’s gain and XRP’s performance has become a point of pride among supporters. Recent market data bolsters this view: massive trading activity has been reported on Upbit, South Korea’s largest crypto exchange, particularly regarding XRP. This spike in volume originally puzzled analysts, as it didn’t immediately translate to a price bump—but in hindsight, it seems to reflect legitimate interest, now visible in XRP’s rising value.

Comparative data over the past week shows Bitcoin up by 8%, while XRP surged by 13.62%. Since the start of the month, XRP has gained 15.37%, outperforming Bitcoin’s 10% rise. These figures suggest XRP’s uptick is consistent and likely based on internal market fundamentals rather than external intervention.

Recurring Concerns: Tether’s Influence on Markets

The connection between Tether’s USDT issuance and Bitcoin surges is not new. For instance, on May 21, 2025, Tether minted $2 billion USDT, and the following day, Bitcoin reached a new high of $111,000. Such correlations have been studied extensively, including by analysts at Blockchain Research Lab, who observed Bitcoin rising by 0.4% to 0.8% within 30 minutes of large-scale USDT mints. These immediate effects often align with real-time alerts issued by on-chain trackers, which in turn drive investor sentiment and induce FOMO (fear of missing out).

Supporting this view, a study conducted in 2018 by two U.S.-based academics highlighted how new Tether issuances frequently follow market downturns and often flow into Bitcoin purchases. While some market watchers argue that these inflows merely enhance liquidity, skeptics caution that improperly backed stablecoin creations can distort actual demand and compromise market integrity.

Still, many analysts argue that while these mints provide capital for broader crypto trading—not just Bitcoin—they contribute to market-wide sentiment and liquidity, explaining why XRP and other tokens have benefited. In fact, XRP jumped 8% over the past 24 hours following Bitcoin’s price breakout.

Altcoins Join the Surge

The broader market also reflects this bullish sentiment. Ethereum surged by 8.24% within the same timeframe, while Solana and Dogecoin saw gains of 4.5% and 10.5%, respectively. While BNB trails behind with a modest 2.84% rise, Cardano emerged as a standout with a notable 15% increase.

Despite these moves, some critics persist in questioning whether Tether has adequate real-world reserves to back its USDT issuance. Their concern hinges on the idea that artificial boosts in liquidity can create inflated asset prices and introduce potential risks, not just for Bitcoin but across the entire crypto landscape.

Related: XRP Price: $12M Max Pain for Bears

In contrast, XRP seems to stand on firmer ground. With mounting transaction volumes on verified exchanges and price rises trailing natural market behavior, stakeholders point to a more stable growth trajectory. As speculation swirls around Tether’s role in driving bullish trends, XRP’s developmental roadmap and adoption continue to offer a more grounded narrative.