Jan 6, 2026
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Early XRP Investors Use OTC Trades to Maintain Price Stability
XRP's price remains stable despite active trading, with structural factors influencing its supply to the market.
Institutional Sales via OTC and Dark Pools
- Large XRP sales occur primarily through institutional channels like over-the-counter (OTC) trades and dark pools, avoiding public exchanges.
- Platforms such as FalconX and Kraken enable large investors to sell without affecting public order books.
- This approach allows significant XRP sales without impacting visible market prices, maintaining market stability even as distribution continues.
Early investors benefit by exiting or rebalancing positions without disrupting execution quality. However, this private channel supply limits upward price momentum even during positive sentiment periods.
Impact of ETF Demand on Liquidity
- ETFs deplete available liquidity by sourcing XRP through OTC desks, the same channels used by early investors for selling.
- This dynamic reduces OTC inventories over time, making large position sales more visible on public markets when OTC supplies tighten.
Until OTC supply becomes limited, XRP’s price may remain capped despite demand. The current price suppression results from the chosen selling strategies of early investors.
