Researcher: Here’s Why XRP Will Not be Volatile

Recent insights shared by crypto researcher ProfessoRipplEffect have brought attention to a notable section of the Cboe BZX Exchange filing about the proposed listing of the Canary XRP ETF Trust (SR-CboeBZX-2025-022).

The filing provides a detailed view of why XRP’s trading structure naturally mitigates volatility and manipulation risks. Rather than attributing its potential stability to a lack of movement, the filing focuses on the architecture of XRP’s global and continuous market activity.

Global Liquidity and Continuous Trading Activity

According to the filing, XRP’s liquidity extends across numerous exchanges worldwide, sustaining active trading around the clock. This continuous activity reduces the chances of artificial price gaps forming during off-hours, which commonly affect traditional markets that operate within limited time windows. By functioning 24/7, XRP markets remain fluid, allowing for price corrections and the absorption of trading shocks in real time.

The exchange filing further emphasizes that this constant market presence diminishes the influence of isolated events or short-term market disruptions. Arbitrage opportunities arising due to temporary dislocations are swiftly corrected by market participants operating across borders and platforms.

This dynamic helps sustain equilibrium and ensures that XRP’s price reflects broad global market conditions rather than isolated regional behavior.

Geographic Diversity and Market Fragmentation

The Cboe BZX Exchange explicitly noted that the “geographically diverse and continuous nature of XRP trading renders it difficult and prohibitively costly to manipulate the price of XRP.”

This statement highlights a key point of differentiation from assets that are heavily concentrated on specific exchanges or within particular regions. XRP’s trading occurs across multiple jurisdictions and time zones. This requires any attempt at price manipulation to coordinate across numerous platforms — an effort that would be both logistically complex and financially burdensome.

The dispersion of trading activity also means that no single entity can dominate market influence. As trading volume is distributed across regions, the impact of wash trading or localized manipulation is diluted by the broader, global market response.

Institutional Arbitrage and Market Balance

In response to the analysis, an X user named Monica added that once regulatory frameworks become more harmonized, XRP’s price equilibrium will increasingly be sustained through institutional arbitrage, On-Demand Liquidity (ODL) pools, and market makers who balance supply and demand for real-time settlement.

This interplay of institutional mechanisms with XRP’s inherent market structure enhances its resilience against volatility.

Taken together, the Cboe BZX Exchange’s observations underscore that XRP’s stability is not accidental but is built into the design of its markets — a structure defined by global reach, constant liquidity, and a high barrier to manipulation.