ETF Buying and the Supply Shock Expectation
Market participants are closely examining the factors influencing XRP's valuation. Recent commentary from crypto analyst {x} (@unknowDLT) has brought attention to the impact of institutional accumulation on the cryptocurrency's price. The analyst highlighted that the current low price environment allows exchange-traded products to acquire significantly larger quantities of XRP. This observation suggests an intensified acceleration of a potential future supply shock.
According to the analyst, the reduced market price enables institutional products to secure substantially higher volumes than they could at elevated price levels. This dynamic is contributing to a rapid increase in locked-in supply, reinforcing the view that a supply shock may be developing faster than previously anticipated. This perspective aligns with ongoing expectations that institutional involvement will eventually alter the structure of XRP’s liquidity as more units become absorbed through long-term holdings.
The current low price means ETFs are buying twice as much XRP. This is accelerating the supply shock dramatically.
— {x} (@unknowDLT) November 20, 2025
Counterarguments About Price Behavior
This perspective has attracted direct responses from X users who offered contrasting explanations, creating a broader conversation on how off-exchange activity may be influencing visible market data. An X user, Jack Lee, challenged the analyst’s conclusion by pointing out that the price has continued to decline despite the alleged increased accumulation. He questioned the logic of the claim, given that market prices have not yet reflected upward pressure. His remark underscored the uncertainty shared by investors who look to exchange-based metrics as primary indicators of demand.
Explanation of Off-Exchange Accumulation
Another participant, OrangePineGood, responded to Jack Lee with an explanation centered on off-exchange buying mechanisms. He stated that a substantial portion of institutional acquisition occurs through over-the-counter arrangements and other non-exchange channels. According to his view, these transactions are not visible in central exchange pricing, which is why the spot market does not reflect the scale of ongoing accumulation.
He added that what becomes measurable later is the effect once larger capital flows transition onto exchanges, where the reduced available supply forces price adjustments. He also noted that wallet movements occasionally provide indirect signs of these off-exchange activities.
Long-Term Outlook Among Supporters
A different user, Brittany Rose, offered a long-term perspective of patience rather than immediate price expectations. She stated that even if XRP remained at $2 for an extended period, supporters would view the situation positively because prolonged lower prices would allow further accumulation before a potential upward adjustment. Her comment highlighted the segment of holders who consider temporary stagnation an advantage rather than a drawback.
Concluding Thoughts on Market Dynamics
The discussion following the analyst’s statement illustrates the range of interpretations regarding how institutional buying interacts with visible market data. While some investors question the absence of direct price movement, others maintain that off-exchange accumulation and delayed price impact explain the current market behavior. As institutional participation continues to grow, these differing viewpoints reflect the ongoing attempt to understand how supply conditions may evolve in the periods ahead.