XRP Drops 20%, but $500M in Corporate Purchases Could Push the Price Up

xrp drops 20%, but $500m in corporate purchases could push the price up
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XRP is currently trading below $2.50, but analysts and investors are eyeing potential ETF approval and strong corporate interest that could change the outlook.

ETF Approval Could Bring More Liquidity

Analyst Crypto Sensei noted that the market is anticipating the approval of a spot XRP ETF. Such a move could significantly boost buying activity.

XRP’s liquidity on exchanges is low. Even small capital flows can affect its market cap by 50 to 100 times. Retail investors hold about $2 billion in XRP. Ripple holds $35 billion in escrow and another $5 to $7 billion for on-demand liquidity. Most of the supply is held by institutions.

Large inflows could reduce sharp price swings

said Sensei.

Investors shouldn’t expect extreme spikes. The market will likely grow steadily as liquidity improves.

Companies Are Adding XRP to Their Corporate Reserves

More and more companies are acquiring XRP for their balance sheets. Reliance Global acquired $17 million worth of XRP in September. Japan’s Gumi added $13.5 million. Vivo Power purchased $100 million in XRP through BitGo. Other companies, such as Trident Digital Tech and Webus, have also made large acquisitions. Smaller firms like Nature’s Miracle and Hyperscale Data have added XRP to their assets as well.

Banks and financial institutions haven’t joined in yet

noted Sensei.

Once regulation becomes clear and companies feel confident, this could lead to a real supply issue. That’s when things will get interesting.

The Next Phase: From Early Adoption to Global Integration

The analyst also pointed out that most of these companies aren’t building decentralized apps or new networks. Instead, they’re using XRP as a treasury asset to strengthen their balance sheets and attract investors — similar to how Bitcoin was adopted in the early stages by corporate treasuries.

The current stage of XRP adoption resembles the early days of Ethereum and Bitcoin in corporate investments

he said.

If this pattern starts spreading globally, XRP could become a common asset in company reserves. Such adoption could quietly build strong momentum behind the scenes.

Conclusion

Despite XRP’s 20% price drop, factors like potential ETF approval and increased corporate interest could spark a significant market shift. With clear regulations and rising demand, XRP has the potential for steady growth and broader institutional adoption.

Frequently Asked Questions

Find answers to the most common questions below.

The drop is attributed to low liquidity and general market volatility, despite long-term institutional interest.

Approval of a spot XRP ETF could boost liquidity and increase investor participation.

Businesses see XRP as a strategic treasury asset, similar to Bitcoin in its early corporate adoption phase.

Мартин Н.

Founder of CryptoPoint.bg and programmer with over 17 years of experience, crypto enthusiast with deep knowledge in software development and passion for decentralization, Martin created CryptoPoint.bg to help anyone who wants to gain insight into the future of digital assets, current crypto news, analytics and blockchain innovations.