In a recent tweet, software engineer Vincent Van Code highlighted concerns regarding XRP’s trading volume compared to Bitcoin (BTC).
Vincent asserted that until XRP sees a significant increase in volume relative to BTC, its price remains influenced by market makers, wash trading, and algorithmic trading rather than organic demand-driven growth.
Until we see significant increase in #XRP volume compared to #BTC, the price of #XRP is linked to the market makers, wash traded, not arbitrage and high frequency trading bots.
This is the true test to see if #XRP has started pumping. Every other scenario is just synthetic. pic.twitter.com/ANHsthOoZs
— Vincent Van Code (@vincent_vancode) February 12, 2025
The tweet was met with agreement from X user Craig Holland, who emphasized that XRP must decouple from the broader cryptocurrency market to establish its independent price trajectory.
This discussion raises critical questions about XRP’s market structure, liquidity, and price behavior. Examining the data attached to the tweet, which shows 24-hour trading volumes, BTC leads with $36.29 billion, Ethereum (ETH) at $20.34 billion, and XRP at $4.63 billion. The disparity between BTC and XRP is significant, reinforcing Van Code’s argument that XRP’s current trading activity does not indicate a breakout scenario.
Understanding Trading Volume and Market Influence
Trading volume is a key indicator of market activity and investor interest. A high trading volume generally suggests stronger price movements driven by genuine market demand. In contrast, a low or stagnant volume relative to major assets can indicate price manipulation, illiquidity, or a lack of organic adoption.
Van Code suggests that XRP’s price movements are primarily dictated by high-frequency trading (HFT) bots, arbitrageurs, and market makers rather than retail or institutional demand. Market makers provide liquidity by continuously buying and selling XRP within a defined spread, while HFT bots execute rapid trades to exploit minute price inefficiencies.
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If the majority of XRP’s trading volume is generated by these mechanisms, rather than natural buying and selling pressure, then its price remains artificially constrained.
Wash Trading and Market Manipulation Concerns
Wash trading—where traders buy and sell the same asset to create the illusion of heightened market activity—has been a persistent issue in the crypto industry. Some exchanges have been accused of inflating trading volumes to attract users. If XRP’s volume is being inflated through such practices, its price may not reflect genuine supply and demand dynamics.
Holland’s comment underscores this point, stating that XRP needs to “break away from the entire pack” and trend on its own merits. This perspective aligns with the idea that XRP must establish its price based on unique utility, adoption, and market interest rather than being tied to broader crypto market movements or speculative trading.
The debate over market manipulation, wash trading, and algorithmic influences will continue, however, XRP’s ability to break free from these forces will be the true test of its long-term potential. Until then, as both Van Code and Holland suggest, any perceived rally must be analyzed critically to determine whether it is synthetic or driven by real market forces.
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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