The cryptocurrency market has a history of explosive rallies, but XRP may be on the verge of experiencing a surge unlike any seen before. Analysts are pointing to a rare confluence of supply and demand factors that could significantly impact XRP's price. A notable convergence of institutional appetite and limited liquidity is creating conditions that analysts believe could push the XRP price sharply higher.
Limited Supply Amid Growing Demand
The concept of XRP's constrained supply has been highlighted on X by a user named Time Traveler. This analyst noted, "There isn’t enough XRP to meet the institutional demand." According to this perspective, this shortage could be a catalyst for significant price movement once demand intensifies.
In a video clip shared within Time Traveler's post, Abs Host engaged in a discussion with Jake Claver. Host posed a question regarding the market's situation from an OTC (Over-The-Counter) standpoint, asking, "Is it a make-or-break situation from an OTC standpoint? Because we know there’s about 30 billion, if you include the OTC desk, $30 billion in value. Now, to some people, it sounds like a huge number. To those in the know, like yourself, it’s a small number."
There isn't enough XRP to meet the institutional demand, so the price will skyrocket. pic.twitter.com/uPBu2zmDHN
— 𝚃𝚒𝚖𝚎 𝚃𝚛𝚊𝚟𝚎𝚕𝚎𝚛 (@Traveler2236) November 20, 2025
Host continued his line of questioning, asking about the implications of ETFs, the Clarity Act, and other events for XRP's price. He inquired, "With these ETFs, with the Clarity Act, with this event that you’re talking about, what does it mean for the XRP price? Why do you get to the arbitrary number of three or four digits? How do you get to these numbers? Demand, right?"
Jake Claver, in his response, elaborated on how institutional demand is a key driver of price potential.
Claver explained, "It’s just a math equation. If you’re going to settle back into the stock market, you would need enough liquidity to be able to do that, and I believe that’s where they’re going to push it to in order to be able to facilitate that. So that’s five or six trillion dollars a day in settlement."
ETFs and Market Absorption
Claver further emphasized that Exchange-Traded Funds (ETFs) are already playing a significant role in consuming XRP's supply. Early trading days for XRP ETFs reportedly generated record inflows for spot cryptocurrency products. "That’s already eating into the OTC desk," Claver added.
He also noted that both OTC markets and dark pools are absorbing XRP before it becomes available on public exchanges. This means institutions are currently acquiring substantial amounts of XRP without directly impacting the visible market price.
The increasing adoption of XRP in foreign exchange operations represents another layer of demand. Claver cited Japan as an example, highlighting SBI's substantial involvement in adopting Ripple and R3 technologies. "If you needed a liquidity buffer for the FX market for all of those transfers, swapping back to Yen, that’s another demand point that they’re going to be utilizing the asset for," he stated.
Exchange Bottleneck: The Tipping Point
Time Traveler and Claver posited that once the liquidity in OTC and dark pools is depleted, institutions will inevitably turn to exchanges to acquire XRP. Simultaneously, potential pressures from the Bitcoin and Tether markets, a concept referred to as the "Shane Ellis theory," could amplify demand. This scenario would force buyers to compete for the limited XRP supply.
Claver summarized the potential situation: "Everybody needs it all at the same time, and there’s not enough to go around." This underscores the possibility of a sudden and sharp price surge that many investors may not anticipate. The combination of ETF inflows, foreign exchange usage, and the inherent limitations of XRP's supply could collectively trigger a dramatic upward movement in XRP's price.
As XRP navigates this convergence of increasing adoption, robust institutional demand, and existing liquidity constraints, market participants may witness one of the most significant bull runs in the history of the cryptocurrency market.