XRP price stagnation is mainly due to centralized control and insufficient demand.

[Coin World] XRP has failed to break through since the pump in November 2024, raising new questions about the reasons for its stagnation. Analysts believe the answer lies in one word - control. In a recent video, the analyst stated that despite the strong technical fundamentals of the Token, there remains a dominant "hand" that continues to influence XRP's market behavior. He pointed out that limited supply, centralized management of the Token, and weak institutional demand are key obstacles.

Ripple's control over XRP supply

Unlike Bitcoin or Ethereum, XRP is pre-mined. At launch, a total of 100 billion Tokens were created—never to be minted again. Ripple Labs initially held 80% of the total supply, and by mid-2025, it still controls about 42%. About 35% of this is locked in monthly escrow accounts, while 7% remains in Ripple's wallet.

Every month, Ripple releases up to 1 billion XRP, which significantly impacts its circulating supply and price dynamics. This level of control has sparked debates over whether XRP can truly be considered a decentralized asset. The analyst warned that market trends no longer reflect organic supply and demand.

Institutional demand remains elusive.

Despite XRP being designed for fast, low-cost cross-border payments—which is a clear utility for banks and institutions—XRP has not seen the same level of institutional appeal as Bitcoin and Ethereum. Adoption remains low. Market uncertainty surrounding Ripple's deals with central banks, along with sparse public information regarding real-time integration, has led to skepticism. This hesitation may deter larger investors.

Transparency Issues: Private vs Public Ledgers

Another concern is the dual ledger architecture of XRP. The public XRP Ledger handles retail and public transactions. However, Ripple has also developed a separate, permissioned ledger specifically for central banks to explore CBDC.

Although it uses technology similar to the public XRP Ledger, this private version is not publicly accessible and operates independently. This private ledger cannot be audited publicly. While some speculate that the two systems will merge in the future, Ripple has not confirmed any such plans. For many investors, this lack of transparency is a red flag. In the cryptocurrency market, transparency and decentralization are crucial for trust, and XRP's closed architecture stands out.

XRP price stagnates until structural change.

Technically, XRP continues to operate as designed. But structurally, it faces challenges. High Token concentration, lack of widespread demand, and limited network transparency restrict its pump potential. Unless Ripple decentralizes Token distribution and opens its private operations—or a new wave of adoption occurs—XRP is likely to remain in a trend of sideways consolidation. As the analyst emphasized, without broader demand and a shift in governance dynamics, price momentum will not recover.