In today’s digital asset landscape, liquidity is everything. A market can appear healthy and deep until someone attempts to move serious volume, and that’s when the illusion cracks. The XRP market is fragile. Big buyers are finding it difficult to accumulate large amounts without causing the price to drop significantly.
That reality came to light recently when crypto analyst Vincent Van Code highlighted a stunning liquidity imbalance on Binance, revealing that only around 4 million XRP remain visible on the order book.
According to him, any buyer attempting to purchase 10 million XRP through Binance would start paying around $2.60 per XRP and finish their order near $15, a scenario that underscores a looming supply squeeze across both public and private markets.
On Binance there is only about 4M XRP on the order book. If you want to buy 10M XRP, you will start at 2.6 and end at $15.
Big buyers use OTC and wholesale to buy XRP to avoid order book drains and price spikes.
What is happening now, is the supply on OTC and wholesale are…
— Vincent Van Code (@vincent_vancode) October 26, 2025
The Liquidity Illusion on Exchange Order Books
Exchange order books, such as Binance’s, only reflect a snapshot of visible liquidity, the resting limit orders that traders are willing to display publicly. In reality, this visible depth is often shallow. The figures may appear substantial until a large buy order consumes the top layers of available liquidity, resulting in rapid price escalation.
This is the mechanism behind Vincent Van Code’s observation. With just a few million XRP in resting sell orders, a sudden market buy of 10 million XRP would sweep through the book, sending the price exponentially higher. The slippage, in this case, isn’t a theoretical risk; it’s a mathematical certainty.
Why Institutional Buyers Rely on OTC and Wholesale Channels
To avoid such violent price impacts, institutional buyers typically use Over-the-Counter (OTC) and wholesale liquidity desks. These private trading venues enable large block transactions outside the public order book, offering anonymity and price stability.
However, according to multiple market data sources and community analysts, OTC liquidity for XRP is drying up. Fewer counterparties are willing to sell at current prices, and large holders are opting to HODL in anticipation of a potential bull run. This creates a feedback loop, as supply tightens off-exchange, those who must source XRP publicly face even greater slippage.
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Bots and Algorithms Are Keeping Prices Stable
Despite thinning liquidity, market-making algorithms and trading bots continue to operate on Binance and other exchanges. These programs break large orders into smaller ones, executing them gradually to avoid sharp spikes.
Still, this approach only delays the inevitable. When OTC and wholesale inventories run low, even the most sophisticated execution algorithms will face a market that simply doesn’t have enough willing sellers. This creates a fragile balance that a single big buy order from an institution could easily disrupt.
The Coming XRP Supply Crunch
If Vincent Van Code’s analysis proves accurate, XRP could be approaching a supply squeeze scenario similar to those seen before historic bull cycles. When exchange liquidity dries up and holders refuse to sell, price discovery becomes explosive.
In such conditions, even moderate market demand can send XRP’s price soaring in short bursts. The implication is clear: the XRP market may be far thinner than it appears, and any substantial buying pressure could trigger big price jumps upward.
In conclusion, Vincent Van Code’s observation serves as a stark reminder of how deceptive crypto market depth can be. With only a few million XRP visible on Binance’s order book and OTC channels reportedly running dry, large-scale accumulation is becoming increasingly difficult.
In the near term, this tightening liquidity could make XRP one of the most volatile and reactive digital assets on the market, particularly if institutional interest continues to rise. As the ecosystem braces for what may come next, one thing is certain: the real XRP price discovery has barely begun.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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