Here’s Why This XRP Pump Is Nothing Serious

Discussions around the market-wide run triggered by Bitcoin have led to suggestions that XRP boasts a more natural pump without external factors.

Notably, Bitcoin recently soared past a new all-time high, climbing above $118,000 during an ongoing market rally. However, as the price climbs, discussions around what’s fueling the surge have emerged, especially after Tether minted another $1 billion worth of USDT. 

XRP Rally More Organic?

For context, the fresh capital injection came just as Bitcoin picked up steam. On-chain tracker Whale Alert first flagged the mint, triggering reactions within crypto circles. Interestingly, this mint came seven days after a previous 1 billion USDT capital injection on July 3.

Shortly after the latest mint, Tether CEO Paolo Ardoino provided clarifications. He said it served to replenish inventory on the Tron network. According to him, the tokens haven’t entered circulation yet and will only come into use when needed for new issuance or chain swaps.

Despite the explanation, the timing has triggered suspicions. Critics have pointed out how similar events in the past often lined up with sudden Bitcoin price jumps. Some also claim Tether initiates these mints from “thin air” and pushes the capital to Bitcoin.

Now, commentators within the XRP community took this cue to draw a line between the two assets. They argue that while Bitcoin’s gains might come from fresh liquidity brought in through USDT, XRP’s rally looks more natural and driven by actual market demand.

Notably, over the past few days, market watchers have called attention to a massive increase in trading activity on Upbit, South Korea’s largest exchange, leading to a surge in volume and netflows. Some questioned why these metrics did not translate to a surge in XRP price at the time. Today, the growing demand appears to be contributing to XRP’s price uptrend, but only after the BTC price rises and altcoins follow.

In the last seven days, Bitcoin has gained 8%. Meanwhile, XRP jumped by a stronger 13.62% within the same time frame. Since the start of the month, XRP has climbed 15.37%, while Bitcoin rose 10%. Although XRP hasn’t hit new record highs, its recent growth appears consistent and, to some, less driven by external factors.

Connection Between USDT Mints and Bitcoin Rallies

The connection between USDT mints and Bitcoin rallies isn’t new. On May 21, 2025, Tether minted $2 billion in USDT. The next day, Bitcoin’s price hit a then-record high of $111,000. Notably, market watchers called attention to the correlation.

Also, analysts at Blockchain Research Lab found that Bitcoin often rises between 0.4% and 0.8% within 30 minutes of a large USDT mint. These jumps occur more frequently when on-chain alert services highlight transactions and spark FOMO across social media. 

Meanwhile, a 2018 study by two American university professors also highlighted this link. Their research found that Tether often issued new USDT after market drops, and those coins regularly flowed into Bitcoin. 

However, market analysts believe these Tether mints merely inject liquidity. They argue that once USDT hits exchanges, traders can use it to buy Bitcoin and other cryptocurrencies, which increases buying pressure and supports rising prices, as in the case of XRP. 

The mere announcement of a mint often boosts confidence and encourages early buying, and as a result of the BTC rise, XRP is up 8% in 24 hours. Meanwhile, other top crypto assets have joined the market run. For instance, Ethereum has rallied 8.24% over the past day, while Solana and Dogecoin have increased by 4.5% and 10.5%, respectively.

BNB appears to have lagged with a mild 2.84% increase within the same timeframe. However, Cardano takes the lead, up 15% during this period.

Nonetheless, others disagree. Some critics question whether Tether fully backs every USDT with real-world reserves. They believe that if Tether prints stablecoins without proper support, it could inflate Bitcoin’s price unfairly and lead to instability.