Analyst Zach Rector has raised concerns about XRP liquidity conditions, pointing out that the asset currently faces a 2.5% spread to sell while trading at $2.81.
He sees an even more concerning figure in XRP’s run-up to higher numbers. For context, the spread is the gap between buy and sell prices. It highlights limited liquidity and challenges for traders trying to exit positions efficiently.
In particular, a 2.5% spread means sellers could receive around $2.74 for XRP, while buyers may pay closer to $2.88. Though this difference might seem small, it shows a market imbalance that could become more pronounced during periods of high volatility.
It’s worth noting that on highly liquid exchanges like Binance, the 2.5% spread Rector referred to may not occur under normal conditions. Typically, the spread is much smaller, often under 0.1%. However, during times of high volatility, it can widen significantly.
“It’s Going to Be a Riot” During a Blow-Off Top
Rector also argued that if spreads are already wide at $2.81, they could worsen significantly when XRP climbs into double digits or during a rapid blow-off top.
He painted a scenario where, as XRP approaches the $10 range, the market could become extremely chaotic. “When XRP is on the run up to $10, it’s going to be a damn riot,” Rector noted.
Notably, during such rapid price surges, liquidity often dries up and trading volumes can overwhelm exchanges. This typically leads to much wider spreads and increased slippage, making it harder for traders to execute orders efficiently.
Caution for XRP Holders and Haters
Rector’s comments suggest that price appreciation alone doesn’t guarantee easy profits. During euphoric rallies, trading friction, exchange delays, and liquidity gaps can make it difficult to sell assets at expected prices.
In response to Rector’s points, community member Josh D remarked that automated market makers (AMMs) could help address the liquidity challenges in volatile market conditions.
He noted that instead of relying on centralized exchanges with widening spreads, traders could leverage AMMs
Well that's where the AMM comes in. Don't swap on a CEX
— joshD (@SmokeandSea) October 9, 2025
In January, Ripple CTO David Schwartz explained how AMMs on the XRPL can capture value from market volatility. Specifically, the process allows liquidity providers to benefit even as prices fluctuate.
Beyond liquidity issues, Rector’s warning highlights that the market may currently be offering an opportune moment to accumulate XRP while activity remains relatively low. However, those sitting on the sidelines now and hoping to enter during a euphoric phase may face a difficult situation.
Not a Good Time to Sell XRP
Rector went further, warning against selling XRP by spotlighting Ripple’s recent collaboration with Securitize. In particular, the two companies are working to bring crypto into the financial mainstream.
Specifically, VanEck and BlackRock have announced plans to tokenize money market funds. They are enabling fund holders to redeem assets directly on-chain using Ripple’s RLUSD, powered by Securitize’s platform.
Securitize emphasized this shift, saying, “It’s time to tokenize the world”. In response, Rector commented, “Imagine thinking now is the right time to sell XRP…”
He suggests those exiting the market now could miss out on significant developments that may positively impact XRP’s future price and utility.
Imagine thinking now is the right time to sell XRP… https://t.co/R5kon2oUEJ
— Zach Rector (@ZachRector7) October 9, 2025
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
