Leading exchange platform ChangeNow released its XRP price predictions for 2026 to 2035, mentioning liquidity, adoption, and regulation as major factors for growth.
XRP has continued to move alongside the broader crypto market, falling nearly 7% over the past week to trade at $1.19 after the market-wide selloff linked to Strategy’s Bitcoin sale.
Amid the recent decline, crypto exchange platform ChangeNow has released its long-term XRP price predictions, presenting possible price ranges from 2026 through 2035.
Key Points
ChangeNow forecasts XRP could reach $20-$40 by 2035 in its most bullish long-term scenario.
The exchange expects XRP to trade between $1.7 and $2.5 in its base-case outlook for 2026 and up to $4.5 in a bullish scenario.
ChangeNow based its forecast on market cycles, market cap limits, liquidity conditions, and adoption trends.
The report argues that a $10 XRP price, implying a market cap of roughly $600 billion, is possible.
Regulation, adoption, and institutional access are major factors that could boost XRP liquidity and demand.
XRP Price Predictions From 2026 to 2035
According to the report, long-term XRP price predictions should not only depend on ambitious price targets. ChangeNow argues that any prediction must consider how XRP could attract enough capital, maintain investor interest, and improve market access.
The platform’s forecast begins with 2026, when it expects XRP to end the year between $0.8 and $1.5 in a bearish scenario, $1.7 and $2.5 in a base scenario, and $3 to $4.5 in a bullish scenario.
The report says liquidity conditions and the market cycle will likely have the biggest contributions when it comes to determining XRP’s price action during this period.
For 2027, ChangeNow projects a range of $0.6 to $1.2 in the bear case, $1.5 to $2.3 in the base case, and $2.5 to $4 in the bull case as the market works through a post-peak cooling phase.
In 2028, ChangeNow expects XRP to trade between $1 and $2 under bearish conditions, $2.5 and $4.5 in the base case, and $5 to $8 if market conditions turn strongly positive.
XRP Price Predictions from 2026 to 2035 | ChangeNow
Meanwhile, the outlook for 2029 places XRP between $0.8 and $1.5 in the bear case, $2 and $3.5 in the base case, and $4 to $7 in the bull case.
By 2030, the exchange sees XRP trading between $1 and $2 in a bearish environment, $3 to $6 in the base case, and $6 to $10 in the most optimistic scenario.
For 2035, ChangeNow sees XRP trading between $4 and $6 in the bear case, $8 and $15 in the base case, and as high as $20 to $40 if long-term demand and market share continue to grow.
What ChangeNow Used to Build XRP Price Forecasts
The exchange says its forecast relies on four main factors.
The first is market cycle behavior. Notably, XRP has historically gone through strong rallies followed by long periods of consolidation, and the report expects this pattern to continue.
For instance, a price of $5 would put XRP’s market value at roughly $300 billion, while $10 would require around $600 billion. A move to $20 would push XRP into trillion-dollar territory, and this would require much larger levels of capital and adoption.
Meanwhile, liquidity and market access represent the third part of the model. The report says exchange listings, regulatory clarity, and custody services will influence how much capital can enter the market.
For the fourth factor, the exchange platform mentions adoption. According to ChangeNow, lasting price growth depends on real usage and repeat demand, not short-term speculation alone.
The Importance of Adoption and Market Access
Besides the XRPL technology itself, the report identified liquidity, adoption, market access, and overall market conditions as the major forces that could influence XRP’s price movements.
It also discussed XRP’s supply structure, pointing out that the asset has a fixed maximum supply of around 100 billion tokens.
Ripple’s escrow system releases 1 billion XRP each month, but unused tokens return to escrow for future release. Meanwhile, transaction fees permanently remove small amounts of XRP from circulation.
The report also compared XRP with traditional payment systems, stablecoins, SWIFT, and central bank digital currencies. Notably, while XRP offers fast settlement and low transaction costs, stablecoins currently hold an advantage in many use cases because they avoid price volatility and simplify accounting processes.
According to ChangeNow, regulation is one of the most important factors for XRP’s future growth. Essentially, clear compliance rules will determine how easily institutional investors can access the asset.
Can XRP Reach $10?
In the concluding part, the ChangeNow report addressed the often-discussed $10 price target. ChangeNow says XRP could reach that level, but it does not see this as the most likely outcome.
Based on the current circulating supply of about 60.9 billion XRP, a $10 price would require a market cap exceeding $600 billion. To sustain this value, the report says XRP would need deep liquidity, broad adoption, strong market access across major regions, and favorable economic conditions.
Without those factors working together, XRP could still experience major rallies during market cycles, but maintaining those higher levels over the long term would be much more difficult.
Analyst CrediBULL believes XRP may continue trading within its current range before making a decisive move in either direction.
XRP fell 2.10% over the past 24 hours to trade at $1.19. The decline comes amid a market pullback. Bitcoin dropped 4% to $66,400 during the same period, while the total crypto market capitalization declined by 2.33%.
Key Points
XRP fell 2.10% to $1.23 as broader crypto markets weakened, with Bitcoin and total market cap also declining.
Analyst CrediBULL expects XRP to remain range-bound and says the asset is not yet ready for a major breakout.
XRP could continue trading between roughly $1.11 support and $1.67 resistance before a clearer trend emerges.
The recent weakness appears tied to broader market pressures, not any XRP-specific bearish development.
CrediBULL Sees Similarities Between XRP and HBAR
In a recent post on X, analyst CrediBULL said he has been closely monitoring XRP’s lower-timeframe (LTF) trading range. He noted similarities between XRP’s current structure and HBAR’s recent price action.
According to the analyst, HBAR has already swept the highs of its range. XRP, however, remains trapped between key support and resistance levels.
Sharing a chart of XRP/USDT, CrediBULL said he expects the token to eventually take both the highs and lows of its current range. However, he is uncertain which side will be reached first.
Despite that expectation, CrediBULL does not believe XRP is ready for a major expansion move. Instead, he expects consolidation to continue in the near term.
More Volatility Expected Before a Breakout
CrediBULL’s chart highlights resistance near $1.67 and support around $1.11. He suggested XRP could continue moving between these levels before establishing a clearer trend.
His view is partly based on his outlook for the XRP/BTC pair. According to CrediBULL, that chart does not yet support an immediate bullish expansion phase.
As a result, traders may experience more “chop” and sideways volatility. Buyers and sellers are still battling for control within the current range.
XRP Weakness Mirrors Broader Market Conditions
The recent decline in XRP follows broader market forces. Bitcoin and the wider crypto market have faced pressure from continued institutional selling through U.S. spot Bitcoin ETFs. For instance, this new month has already seen more than $1 billion in ETF outflows.
The trend reflects a risk-off environment as investors reassess their exposure to digital assets. Market participants have also pointed to expectations that interest rates could remain elevated for longer. At the same time, capital continues to flow into rapidly growing artificial intelligence-related stocks.
In sum, XRP continues to struggle in recent sessions, but the decline is driven by broader market weakness rather than any XRP-specific issue. For analysts like CrediBULL, traders should watch the current trading range as it tests support and resistance levels before making its next major move.
Every trade in the cryptocurrency market depends on liquidity, as this metric determines if an order is filled at the expected price or causes noticeable price movement.
Whether a retail investor buys $500 worth of Bitcoin (BTC) through a mobile app or a hedge fund moves $50 million through an over-the-counter (OTC) desk, liquidity affects how smoothly the trade goes through. It.
The crypto market has grown to a massive size in 2026. Daily spot trading volume across major exchanges regularly exceeds $100 billion, while the total stablecoin supply has climbed to $320 billion, according to data from CoinMarketCap.
At press time, futures trading accounted for about 90% of total crypto market volume over a 24-hour period, making up $299 billion of the $331 billion total, per Coinglass data. Also, institutional investors now make up more than 65% of all trading volume.
24h Crypto Trade Volume | CoinGlass
Despite the growth, liquidity is still uneven across the market. Some assets can handle large trades without much price impact, while others can experience sharp price swings from relatively small orders.
Liquidity can also dry up quickly during periods of market stress. While it represents an important aspect of the crypto market, most of the estimated 560 million crypto holders worldwide still do not fully understand how liquidity works.
Investors should realize that the concept of liquidity is no longer something they ignore. It often makes the difference between exiting a position smoothly and getting caught in a market riddled by sharp price swings.
What Is Crypto Liquidity and How Does It Work?
Liquidity refers to how easily an asset can be bought or sold without causing a major change in its price.
In traditional finance markets, U.S. Treasury bills rank among the most liquid assets in the world because investors can buy or sell large amounts almost instantly with very little effect on price.
Meanwhile, commercial real estate in smaller markets sits at the other end of the spectrum. Property owners may spend months searching for buyers and often have to accept lower prices to complete a sale.
Cryptocurrencies fall somewhere between the two extremes, although liquidity levels are different across multiple assets. Some digital assets enjoy deep liquidity, while others remain difficult to trade without moving the market.
Several important factors define crypto liquidity:
Trading Volume
Trading volume remains one of the strongest indicators of liquidity. Higher volume usually means more buyers and sellers are active in the market, making it easier to enter and exit positions with limited slippage.
In May 2026, Bitcoin’s daily trade volume ranged between $16 billion and $43 billion. During highly volatile periods, that figure climbed as high as $54 billion. Ethereum and other major altcoins recorded lower but still significant trading volumes.
Smaller cryptocurrencies often see only a few thousand dollars in daily trading activity. In those markets, even relatively small trades can push prices up or down by double-digit percentages.
Exchange Coverage
The number of exchanges that list a cryptocurrency also affects liquidity.
Assets available on many trading platforms usually attract a larger pool of buyers and sellers. Bitcoin benefits from this advantage more than most cryptocurrencies, with listings on over 400 exchanges worldwide.
Most mid-cap and small-cap tokens do not enjoy the same level of market access, and this limits their liquidity.
Stablecoin Liquidity
Stablecoins have become one of the most important sources of liquidity in the crypto market.
In 2026, stablecoins act as the primary settlement layer for most crypto transactions. The total stablecoin market capitalization has crossed $320 billion as of June 2026.
Top 5 Stablecoins by Market Cap | CoinMarketCap
Tether (USDT) accounted for about $187 billion of this total and held a market dominance of 58.4%. USD Coin (USDC) followed with a market capitalization of $75.9 billion.
Stablecoins represented roughly 75% of all crypto trading volume during the first quarter of 2026. When stablecoin inflows increase, they often indicate fresh capital entering the market and can support price growth across major cryptocurrencies.
Meanwhile, when stablecoin balances decline, the opposite usually happens. Investors often move into a more defensive position, reducing risk and putting additional pressure on crypto prices.
Market Makers
Market makers also have an important role to play when it comes to maintaining crypto liquidity.
These firms continuously place buy and sell orders and earn profits from the difference between bid and ask prices. Their activity helps balance supply and demand and keeps markets functioning smoothly.
Without active market makers, even cryptocurrencies with decent trading volume can become difficult to trade during periods of market stress.
Why Crypto Liquidity Matters for Investors in 2026
Liquidity has a direct impact on trade execution.
In highly liquid markets, investors can usually buy and sell near the quoted price and benefit from narrow bid-ask spreads and minimal slippage.
However, in less liquid markets, traders often pay higher prices when buying and receive lower prices when selling. In some cases, finding a willing counterparty becomes difficult.
The importance of liquidity is even greater when it concerns institutions.
Institutional investors account for more than 65% of crypto trading volume in 2026. Asset managers handling hundreds of millions or even billions of dollars cannot just place large market orders without affecting prices.
Large orders could quickly push prices higher or lower when order books lack sufficient depth. To avoid this problem, institutions often rely on OTC trading desks.
The crypto OTC market now processes an estimated $50 billion to $60 billion in average daily volume. Between January and February 2026 alone, OTC volume reached roughly 25% of the total volume recorded during all of 2025.
The Impact of Spot Bitcoin ETFs
Spot Bitcoin ETFs have massively changed the dynamics surrounding crypto liquidity.
By early June 2026, BlackRock’s IBIT ETF held approximately $52 billion in net assets. While the Bitcoin ETF market saw outflows worth $2.43 billion in May 2026, the products recorded two consecutive monthly net inflows worth a combined $3.29 billion in March and April 2026.
The funds have opened a regulated path for institutional investors to gain Bitcoin exposure. However, they have also introduced new risks. Large ETF outflows can create selling pressure that affects even the most liquid markets.
Although Bitcoin showed stronger market depth during the corrections of late 2025 and early 2026 than it did during the liquidity shortages of 2021, institutional flows still massively determine overall market liquidity.
The Macro Liquidity Environment
Broader economic conditions also influence liquidity.
Compared with previous bull cycles, liquidity remained relatively tight throughout early 2026. After Bitcoin fell more than 45% from its late-2025 peak and ETF outflows increased, the market entered a longer accumulation phase.
During this period, institutional investors reduced risk-asset exposure to around 5% and increased stablecoin allocations to approximately 28%. This defensive positioning further reduced available market liquidity.
The Danger of Low Liquidity: What Is a Liquidity Crunch?
A liquidity crunch happens when buyers, sellers, and tradable assets disappear faster than the market can adjust. In crypto, this process can play out within minutes.
The event later became known as Crypto Black Friday. It began after President Donald Trump announced a 100% tariff on Chinese imports, leading to a sharp selloff across global risk markets.
Crypto markets were already vulnerable before the announcement.
Open interest in perpetual futures contracts had reached a record $217 billion, and long positions dominated the market. Once prices started falling, automated liquidation systems accelerated the decline.
The result of this event led to the largest single-day deleveraging event in crypto history.
During a 24-hour period:
Exchanges liquidated approximately $19.13 billion in leveraged positions.
Around 1.6 million traders were affected by forced liquidations.
70% of all liquidations occurred within just 40 minutes.
Liquidations happened at a pace 14.6 times faster than surrounding periods.
The worst single minute saw roughly $3.21 billion wiped out.
Forced liquidations of long positions accounted for 93.5% of that total.
The damage spread across the entire crypto market.
Total cryptocurrency market capitalization fell by an estimated $350 billion to $560 billion in a single day. Perpetual futures open interest dropped 43%, falling from $217 billion to $123 billion. Hyperliquid experienced a 57% decline in open interest within only a few hours.
The situation worsened when Binance’s synthetic stablecoin USDe lost its peg and dropped to approximately $0.65. This depeg triggered additional liquidations across liquid staking derivatives and alternative Layer-1 ecosystems.
After the crash, liquidity conditions fell to their weakest levels since 2022. Market makers faced heavy selling pressure, while funding-arbitrage strategies that once produced easy returns dropped below 4%.
Liquidity Risks Continued in 2026
The liquidity challenges did not end with the crash.
By early 2026, only around 13% of Bitcoin’s circulating supply remained actively available for trading on public markets. Long-term holders added another 212,000 BTC to their holdings during February 2026, reducing available supply even further.
Earlier in the year, Bitcoin lost the $84,000 support level. At that point, approximately 1.2 million BTC moved into unrealized loss territory, adding pressure to an already thin market.
The market eventually rebounded by 12.31% on February 6, 2026, but only after exchange reserves declined significantly. The recovery showed an important lesson: in markets with limited liquidity, even small changes in available supply can lead to large price moves.
Altcoins face even greater risks.
For some low-cap cryptocurrencies, a $100,000 market buy order can move prices by 5% to 10% almost instantly. During major market downturns, liquidity often disappears when investors need it most. Also, bid-ask spreads widen, and actual trade prices can end up far from quoted prices.
Key Indicators: How to Measure a Crypto Asset’s Liquidity
Investors should not only consider simple trading volume when evaluating liquidity. Some exchanges inflate volume through wash trading, and this makes raw volume figures less reliable on their own.
Instead, investors should monitor these important indicators:
Bid-Ask Spread
The bid-ask spread is one of the easiest liquidity metrics to understand.
It measures the difference between the highest price buyers are willing to pay and the lowest price sellers are willing to accept.
For highly liquid pairs such as BTC/USDT on Binance, the spread may be only a few cents. Thinly traded altcoins often show spreads between 1% and 3%, and sometimes even wider.
In most cases, narrower spreads indicate that the market faces healthy liquidity.
Order Book Depth
Order book depth measures the value of buy and sell orders sitting close to the current market price, usually within a 1% or 2% range.
A deeper order book allows larger trades to take place without causing major price swings.
Bitcoin’s 2% market depth across major centralized exchanges reached approximately $539 million in early 2024. The launch of U.S. spot Bitcoin ETFs helped improve that figure by around 30%.
However, liquidity remained below the more than $800 million in market depth recorded before the collapse of FTX in November 2022.
By January 2026, Amberdata reported:
Bitcoin order book depth of approximately $614.1 million.
Ethereum order book depth of approximately $475.5 million.
Solana order book depth of approximately $247 million.
Many altcoins experienced noticeable liquidity declines during the same period.
Trading Volume Quality
Not all trading volume represents genuine activity.
Investors should compare exchange-reported volume with on-chain transaction data to identify potential inconsistencies.
During early 2026, Binance maintained a liquidity score of 881 and processed roughly $4.65 billion in daily volume. Multiple independent analytics providers confirmed those figures.
Combined trading volume across major centralized exchanges reached $5.61 trillion in February 2026.
During the same month, decentralized exchanges processed $287 billion in trading volume, representing a 15.5% decline and suggesting that some liquidity had moved away from decentralized markets.
DEX-to-CEX Ratio
The DEX-to-CEX ratio has become another useful liquidity indicator.
Decentralized exchanges captured a record 24.5% share of total trading volume in June 2025 during a period of strong DeFi activity.
By January 2026, the share had fallen to 13.6%.
A rising DEX share often confirms higher participation in decentralized markets, while a falling share can indicate market stress or renewed dominance by centralized exchanges.
ETF Net Inflows
ETF inflows have become an important measure of institutional sentiment.
Strong inflows often show that institutions are accumulating assets and adding support to market liquidity. Sustained outflows can indicate a drop in risk exposure and may precede weaker liquidity conditions across the broader market.
Centralized vs. Decentralized Liquidity: What’s the Difference?
Crypto liquidity comes from two very different market structures: centralized exchanges (CEXs) and decentralized exchanges (DEXs).
Centralized Exchange Liquidity
Centralized exchanges use traditional order books to facilitate trading. In this case, buyers and sellers place orders, and the exchange matches those orders based on price and availability.
Binance remained the largest player in this segment, controlling an average of around 39% of the centralized spot market throughout 2025, according to a CoinGecko report. The exchange generated between $450 billion and $500 billion in monthly trading volume.
In 2025, Binance, Bybit, MEXC, Gate, and Crypto.Com together accounted for nearly 70% of spot trading activity among major centralized exchanges.
One of the biggest advantages of centralized exchanges is their deep liquidity. They generally handle large transactions more efficiently and with less price impact.
However, these platforms also have their own risks. Users must trust the exchange to safeguard their assets, creating custodial and counterparty exposure. The 2025 Bybit hack highlighted these risks when losses were estimated between $1.4 billion and $1.5 billion.
DEXs use liquidity pools managed by smart contracts instead of relying on order books. These platforms allow users to trade directly from their wallets without giving control of their assets to a third party.
The decentralized finance sector continued to grow throughout 2025. Total value locked (TVL) across DeFi protocols reached approximately $123.6 billion during the second quarter of the year, representing annual growth of 41%.
Ethereum remained the dominant blockchain in DeFi, accounting for approximately $78.1 billion in TVL, or around 63% of the entire market.
Among individual protocols:
Lido held approximately $30 billion in TVL.
Aave followed with roughly $15 billion in TVL.
Despite the long-term growth trend, decentralized trading activity slowed at times. DEX volume fell 15.5% to $287 billion in February 2026, showing that liquidity in decentralized markets can be cyclical.
Another major difference between CEXs and DEXs is in how they determine prices.
Centralized exchanges rely on competing buy and sell orders to discover prices. Meanwhile, decentralized exchanges use mathematical formulas that automatically adjust prices based on trade size and available liquidity.
This leads to predictable pricing mechanics, but large trades can still have a bigger impact on prices. Liquidity providers also face the risk of impermanent loss when asset prices move suddenly.
How Automated Market Makers (AMMs) Drive Web3 Liquidity
AMMs use liquidity pools that hold reserves of two different assets instead of matching buyers and sellers directly. In this case, the prices adjust automatically as traders buy or sell from those pools.
The Formula Behind AMMs
Uniswap V2 helped popularize the constant product formula:
x times y = k
In this formula:
x represents the reserve of one token.
y represents the reserve of the second token.
k remains constant.
When traders buy one asset, they add the other asset to the pool. This changes the balance between the reserves and automatically updates the price.
Uniswap’s Dominance
Uniswap remains the leading AMM platform across the crypto industry.
By early June 2026, the protocol held $3.1 billion in total value locked across multiple blockchains. It also processed $36 billion in May 2026 trading volume. This figure reached a peak of $124 billion in August 2025 but has since continued to decline.
Historically, cumulative trading volume on Uniswap has surpassed $3.4 trillion.
Layer-2 networks contributed to this growth. Platforms such as Base and Arbitrum accounted for more than 65% of daily Uniswap volume by lowering transaction costs and making decentralized trading more accessible to retail users.
Uniswap V3 and V4 Innovations
Uniswap V3 introduced concentrated liquidity, which allows liquidity providers to focus their capital within specific price ranges.
This improvement increased capital efficiency by as much as 4,000x for tightly concentrated positions. As a result, decentralized liquidity became much more competitive with traditional order-book liquidity on centralized exchanges.
Uniswap V4 built on these improvements.
The protocol launched in January 2025 and surpassed $1 billion in TVL within just 177 days. Since launch, it has processed more than $100 billion in cumulative trading volume.
Uniswap V4 also introduced programmable hooks, which allow developers to add custom features such as dynamic fees and automated trading strategies directly into liquidity pools.
Growth Across Other AMM Ecosystems
Uniswap is not the only major AMM platform.
PancakeSwap continues to dominate the BNB Chain ecosystem with $2.241 billion in total value locked as of early June 2026.
The protocol controlled approximately 29.5% of the DEX market and recorded a monthly trading volume record of $325 billion in June 2025.
Decentralized derivatives trading also expanded.
Hyperliquid captured approximately 80% of the decentralized perpetual futures market. The platform processed roughly $357 billion in monthly derivatives volume and supported infrastructure capable of handling 200,000 orders per second.
The Risks of AMM Liquidity
While AMMs have improved decentralized liquidity, they also come with some risks that traders should consider.
A November 2025 article from MEXC revealed that about 50% of Uniswap V3 liquidity providers ended up with net losses from impermanent loss, even after collecting trading fees.
This happens when the prices of paired assets move significantly apart. The pool automatically rebalances holdings, which can leave liquidity providers with less exposure to stronger-performing assets and more exposure to weaker-performing ones.
Security is another major concern.
Smart contract exploits caused losses exceeding $600 million during the early months of 2026 alone. These incidents show the unique risks that come with decentralized liquidity systems.
FAQs
What exactly is slippage, and how does it affect me?
Slippage is the difference between the price you expect and the price you actually receive when a trade executes.
In highly liquid Bitcoin markets, slippage is often only a fraction of a percent. However, in low-liquidity altcoins, a $100,000 market order can move prices by 5% to 10% almost immediately.
Slippage increases trading costs and can make it difficult to exit positions during periods of heavy market volatility.
Is high trading volume always a reliable sign of liquidity?
Not necessarily.
High volume can sometimes come from wash trading or short-term market volatility, not genuine buying and selling activity.
That is why investors should not only consider trade volume but also monitor indicators such as:
Order book depth
ETF inflows and outflows
Bid-ask spreads
Stablecoin flows
A truly liquid market has active buyers and sellers across multiple price levels, not just occasional bursts of trading activity.
Why do stablecoins matter so much for liquidity?
Stablecoins act as the main settlement asset across crypto markets.
Stablecoins accounted for approximately 75% of total crypto trading volume.
Stablecoin transfer volume reached roughly $28 trillion.
As stablecoins act as the primary source of deployable capital, increases in supply often indicate fresh money entering the market. Declining supply can point to lower risk appetites.
How does Bitcoin’s liquidity compare to altcoins?
Bitcoin remains significantly more liquid than most cryptocurrencies.
Its deep order books, broad exchange coverage, and ETF ecosystem worth approximately $85 billion allow it to absorb large institutional trades better.
Many altcoins, despite having market capitalizations worth hundreds of millions of dollars, generate only a few million dollars in daily trading volume. As a result, they are much more vulnerable to sharp price swings when selling pressure increases.
What should an investor practically do about liquidity risk?
Managing liquidity risk starts by understanding how easily an asset can be traded before entering a position.
Several practical steps can help:
Size positions based on daily trading volume, not just market capitalization.
Use limit orders whenever possible to reduce slippage.
Pay attention to bid-ask spreads and order book depth.
Consider stablecoin liquidity pools offering 3% to 5% APY during uncertain market conditions.
Review the liquidity profile of every asset before market volatility forces an exit.
Conclusion
Liquidity remains one of the most important factors in cryptocurrency investing, but many investors still overlook it.
Even with daily spot trading volume exceeding $100 billion, a stablecoin market worth $320 billion, and institutional investors accounting for more than 65% of trading activity, liquidity can disappear very fast when markets come under pressure.
The events of Crypto Black Friday in October 2025 showed how quickly thin liquidity can trigger massive liquidations and widespread losses.
Investors who understand liquidity have an advantage. Monitoring bid-ask spreads, order book depth, stablecoin flows, ETF activity, and both centralized and decentralized liquidity sources can help investors make better decisions during volatile market conditions.
XRP community commentator Eri has challenged growing speculation that a major Japanese yen carry-trade unwind in July could trigger an immediate surge in XRP’s price.
Key Points
XRP community commentator Eri pushed back against claims that a yen carry-trade unwind could trigger an immediate XRP price surge.
Her comments follow growing speculation among XRP supporters that global financial stress could increase demand for bridge assets like XRP.
Eri argued that the Bank of Japan has maintained a gradual and predictable monetary-tightening strategy, reducing the likelihood of a sudden and disorderly yen unwind.
She suggested that it could take another 18 to 24 months for the Bank of Japan to raise interest rates from the current 0.75% toward 1.5%.
Eri also highlighted insufficient liquidity as one of the major challenges limiting broader adoption of the XRP Ledger ecosystem.
Eri Dismisses Speculation About Potential XRP Price Surge from Yen Carry-Trade Unwind
Renewed speculation surrounding a potential Japanese yen carry-trade unwind has reignited bullish discussions within the XRP community. According to community commentator Eri, some market participants believe the event could spark a dramatic XRP price surge.
The theory argues that stress across global financial markets could increase demand for neutral bridge assets like XRP, potentially positioning the cryptocurrency as a major source of international liquidity.
However, Eri offered a more cautious interpretation of the growing narrative. Referencing a Bank of Japan (BoJ) policy-rate chart, she emphasized that Japanese monetary tightening has followed a highly predictable and gradual trajectory.
According to the chart, Japan’s interest rate rose from approximately -0.1% in April 2023 to 0.75% by December 2025. Eri argued that this slow normalization process gives institutions and leveraged traders enough time to adjust their positions gradually instead of triggering sudden market-wide liquidations.
BOJ Policy Interest Rate
She further noted that a more significant repositioning phase may not begin until Japanese rates approach roughly 1.5%. Notably, she believes this milestone could still be 18 to 24 months away. Consequently, Eri believes the likelihood of a disorderly yen unwind remains relatively low.
Liquidity Constraints Could Limit XRP Adoption
In addition, Eri highlighted another challenge affecting the XRP Ledger (XRPL) ecosystem: liquidity constraints. Citing comments from XRPL Foundation leader Brett Mollin, she noted that insufficient liquidity remains one of the biggest barriers to broader XRPL adoption. This comes as community experts emphasize the need to boost XRPL liquidity to enable the blockchain to reach its full potential.
According to Eri, stablecoins such as USDT and USDC continue to dominate many international trading and settlement flows because they offer deeper liquidity pools and larger markets. She described this structure as a “stablecoin sandwich,” where stablecoins increasingly serve as intermediary assets in fiat-to-fiat global transactions.
In her view, XRP could still benefit from long-term growth in global payments and tokenized finance. Nonetheless, she believes expectations of an immediate price explosion tied to Japan’s monetary policy may be overstated.
Meanwhile, XRP continues to face strong pressure from the broader crypto market, as its price fell 2.02% over the past 24 hours to $1.22.
Technology in the cryptocurrency industry has matured significantly over the past few years, but scammers continue to evolve just as quickly.
While security tools have improved and user awareness has increased, fraudsters are constantly developing new methods to target both newcomers and experienced market participants.
What makes cryptocurrency scams particularly dangerous is the irreversible nature of blockchain transactions. Once funds leave a wallet, recovering them can be extremely difficult. As a result, understanding how modern scams operate is one of the most effective ways to protect your assets.
Many fraudulent schemes no longer resemble the obvious scams of the past. Today’s attackers often build professional-looking websites, impersonate trusted brands, create convincing social media profiles, and exploit popular narratives such as artificial intelligence, tokenized assets, decentralized finance, and meme coins.
In 2025, crypto scams reached a record $14 billion, significantly higher than the $9.9 billion recorded in 2024 per Chainalysis. The increase followed a 1,400% rise in impersonation crimes YoY. Still, pig butchering and fake investment schemes remain the dominating sources of crypto exploitations globally.
Understanding the most common scam schemes can help users identify warning signs before becoming victims. Here are the ten most common schemes bad actors are employing.
10 Most Common Cryptocurrency Scams in 2026
Phishing Attacks
One of the most common crypto scams remains phishing attacks. Fraudsters create fake websites that closely resemble legitimate exchanges, wallets, or decentralized applications. Users unknowingly enter their passwords, recovery phrases, or private keys, giving attackers immediate access to their funds.
Recently, a fake Uniswap website emerged on Google, promoted to rank high through ads. Users mistook it as the original DEX platform, with scammers draining and making off with over $400,000.
Fake Token Launch
Another widespread threat involves fake token launches. Scammers create excitement around a new project, often promising revolutionary technology or exclusive opportunities.
After attracting buyers, the creators disappear with the funds, leaving investors with worthless tokens.
Social Media Impersonation
Social media impersonation scams continue to cause significant losses. Here, fraudsters create accounts pretending to be founders, influencers, or exchange representatives. They contact users directly, either requesting wallet information or encouraging transfers to fraudulent addresses.
Scammers also hack accounts of well-known crypto entities and promote illegitimate coins. When users blindly buy them, they get rug-pulled, benefiting the hacker. An example was in 2025, when bad actors hacked the X account of Ai6z founder Shaw to promote fake ELIZA tokens.
AI Deepfakes
AI-generated deepfake scams have become increasingly sophisticated. Criminals use artificial intelligence to create realistic videos and voice recordings of public figures appearing to endorse a project or request funds. Many victims believe the content is authentic.
Singapore Prime Minister Lawrence Wong warned of a deepfake circulating over social media, where he was seen promoting fake crypto tokens. Scammers usually employ this scheme to pose as authentic, leveraging the trust of prominent personalities.
Wallet Drain Scam
Wallet-drainer scams have emerged as one of the fastest-growing threats in the Web3 sector. Rather than trying to gain access to private keys, hackers develop disguised permission systems that automatically give them access to one’s account.
Users connect their wallets to these malicious applications and unknowingly approve permissions that allow attackers to transfer assets without additional authorization.
Fake Customer Service
Fake customer support scams remain highly effective. Attackers monitor social media for users reporting technical issues. They then pose as support agents and direct victims toward fake websites designed to steal credentials.
Sometimes, they send messages to users claiming that their accounts are at risk, prompting them to either relinquish some account details or transfer their funds to a provided address for safety. That way, they gain access to their funds and launder them.
Romance Scam
Romance or “pig butchering” scams have also entered the cryptocurrency space. Criminals establish long-term online relationships, sometimes as casual friends, or try to lure victims to fall in love with them.
Eventually, they convince victims to send funds to fraudulent investment platforms that appear legitimate. For romantic relationships, they sometimes demand help in crypto to meet a dire need.
Ponzi Schemes
Ponzi-style yield platforms continue to surface despite years of warnings. These schemes promise unusually high returns and use deposits from new participants to pay earlier users until the operation eventually collapses.
Scammers post high returns allegedly received from the platform and sometimes use multiple accounts to share the same fake testimony. Victims eventually fall for this scheme and lose their funds chasing illusive gains.
Malware Attack
Malware attacks are another major concern. Fraudulent software, browser extensions, and mobile applications can secretly record keystrokes, steal wallet information, or replace copied wallet addresses during transactions.
Notably, hackers drained over $300 million from Zoom-related malware attacks in 2025. What usually starts as a simple conversation ends up in the user installing malware that gives exploiters access to their crypto wallet.
Fake Giveaway Scams
Giveaway scams remain surprisingly common. Fraudsters claim that users can send cryptocurrency to a specific address and receive a larger amount in return. Despite countless warnings, these scams continue to generate millions of dollars in losses every year.
In February, a fake SOU NFT airdrop emerged following the token’s launch on the Shiba Inu ecosystem. Hackers set up fake websites mimicking the Shiba Inu community website and promoted this airdrop. Users who connect their wallet to participate get drained.
Red Flags: How to Spot a Crypto Scam Before Investing
Most scams share several common characteristics regardless of how sophisticated they appear.
One major warning sign is unrealistic promises. Any project guaranteeing profits or claiming risk-free returns should immediately raise concerns. Financial markets involve uncertainty, and legitimate projects rarely make absolute promises.
Pressure tactics are another common indicator. Scammers often attempt to create urgency by claiming an offer will expire within minutes or that users must act immediately to secure an opportunity.
Lack of transparency should also trigger caution. Legitimate projects typically provide information about their team, roadmap, technology, partnerships, and security practices. When these details are hidden or difficult to verify, users should proceed carefully.
Meanwhile, poor website quality can provide additional clues. While some scams build convincing platforms, many still contain grammatical errors, broken links, copied content, or suspicious domain names.
Requests for recovery phrases represent one of the clearest warning signs. No legitimate company, wallet provider, or support team will ever need access to a user’s seed phrase.
Users should also be cautious when encountering projects that rely entirely on celebrity endorsements or social media hype without providing meaningful information about their product or ecosystem.
What Is the Most Common Way People Lose Crypto to Fraud?
Although scam techniques continue to evolve, human error remains the primary cause of losses.
The most common way people lose cryptocurrency is by voluntarily authorizing access to their wallets. This can happen through phishing websites, malicious smart contracts, fake applications, or fraudulent support interactions.
Many victims do not realize they are being targeted because the attack appears legitimate. Modern phishing websites often look nearly identical to genuine platforms, making it difficult for inexperienced users to identify the difference.
Another frequent cause involves sending funds directly to scammers after being persuaded by promises of extraordinary returns or exclusive opportunities. Emotional decision-making often plays a significant role in these situations.
Social engineering remains one of the most powerful tools available to fraudsters. Instead of attacking technology, scammers frequently target human psychology through trust-building, fear, excitement, or urgency.
Step-by-Step Guide: How to Secure Your Web3 Wallet
Protecting a Web3 wallet begins with safeguarding the recovery phrase. This phrase should never be stored in cloud storage, screenshots, email drafts, or messaging applications.
Hardware wallets provide one of the strongest layers of protection. By keeping private keys offline, they significantly reduce exposure to malware and phishing attacks.
Users should carefully verify website URLs before connecting their wallets. Even minor spelling differences can indicate a fraudulent website designed to steal credentials.
Transaction approvals deserve close attention as well. Many wallet-drainer attacks succeed because users approve permissions without reviewing what they are authorizing.
Regularly reviewing wallet permissions can help reduce risk. Revoking unnecessary approvals limits the ability of malicious applications to access funds in the future.
Strong passwords and two-factor authentication add another layer of security for exchange accounts and related services.
Keeping software updated is equally important. Wallet applications, browsers, operating systems, and security tools often receive updates that address newly discovered vulnerabilities.
Finally, separating funds across multiple wallets can help minimize potential losses if one wallet becomes compromised.
Can You Recover Stolen Cryptocurrency?
Recovering stolen cryptocurrency is possible in some situations, but success rates remain relatively low. The decentralized nature of blockchain networks means protocols cannot reverse transactions after confirmation. Once funds reach an attacker’s wallet, recovery becomes significantly more challenging.
However, recovery is not impossible. Law enforcement agencies increasingly collaborate with blockchain analytics firms to trace stolen assets. In some cases, authorities have successfully recovered funds linked to large-scale fraud operations. For instance, the US DOJ recovered $225 million stolen from over 400 Americans in 2025 through the aid of the FBI and US Secret Service.
Quick action can improve the chances of recovery. Reporting the incident immediately may help investigators track asset movements before the funds are mixed, bridged, or converted. Victims should document all relevant information, including wallet addresses, transaction IDs, screenshots, communications, and website links associated with the incident.
Even when funds cannot be recovered, reporting scams helps authorities identify patterns and prevent future victims from suffering similar losses.
Where to Report Cryptocurrency Fraud and Scams
Anyone who becomes a victim of cryptocurrency fraud should report the incident to relevant authorities as quickly as possible.
Local law enforcement agencies often serve as the first point of contact. Depending on the jurisdiction, specialized cybercrime units may also investigate cryptocurrency-related offenses. Many countries also operate dedicated fraud reporting centers where victims can submit information about scams and suspicious activity. Specifically, the UK has “Action Fraud,” and the US has the FBI Internet Crime Complaint Center (IC3).
Major exchanges always have compliance and security teams that flag suspicious addresses or monitor asset movements connected to reported incidents. Users can get help by using the relevant escalation point on these platforms.
Blockchain analytics firms and on-chain sleuths sometimes cooperate with investigations by tracing stolen funds across networks and identifying potential off-ramps used by attackers. An instance is ZachXBT, who played a major role in the tracking of the $1.5 billion Bybit hack last year. The sleuth aided in the recovery of a portion of the stolen funds. As such, on-chain trackers are also entities where victims can report theft.
It is also important that users report fraudulent websites, social media accounts, and applications to the platforms hosting them. Removing scam infrastructure can help protect others from becoming victims.
Frequently Asked Questions About Crypto Security
Are cryptocurrency scams becoming more sophisticated?
Yes. Fraudsters are increasingly using artificial intelligence, professional-looking websites, deepfake videos, and highly convincing social media accounts to target users. Modern scams often appear legitimate at first glance, making it more important than ever to verify information before connecting a wallet or sending funds.
However, the tactics are still ancient. It is the same scam methods refined with technology. As such, it remains avoidable with the right steps.
Can a hardware wallet completely protect my cryptocurrency?
A hardware wallet provides one of the strongest forms of protection because private keys remain offline. However, it cannot protect users who voluntarily approve malicious transactions or reveal their recovery phrases. Security ultimately depends on both the technology and the user’s actions.
Is it safe to connect my wallet to decentralized applications?
Connecting a wallet to a decentralized application can be safe if the platform is reputable and has undergone security reviews. However, users should always verify the website address, research the project, and carefully review transaction approvals before granting any permissions.
Can antivirus software prevent crypto theft?
Antivirus software can help detect malware and other security threats, but it cannot stop every type of cryptocurrency scam. Phishing attacks, fake websites, social engineering schemes, and malicious smart contracts often rely on tricking users rather than exploiting devices directly.
Is keeping cryptocurrency on an exchange safer than using a personal wallet?
Both options have advantages and risks. Exchanges offer convenience and account recovery options, while personal wallets provide direct control over assets. Users who choose self-custody must take full responsibility for securing their recovery phrases and private keys.
Can stolen cryptocurrency be recovered?
Recovery is possible in some cases, especially when law enforcement agencies and blockchain analytics firms become involved. However, because blockchain transactions are generally irreversible, successful recovery can be difficult. Reporting theft quickly improves the chances of tracing stolen funds.
What should I do if I think I have been targeted by a scam?
If you suspect a scam, stop all communication immediately and avoid sending additional funds. Secure your accounts, revoke suspicious wallet permissions, document all relevant information, and report the incident to the appropriate authorities, exchanges, and security platforms as soon as possible.
What is the best way to protect cryptocurrency holdings?
The most effective approach combines several security practices. Using a hardware wallet, safeguarding recovery phrases offline, enabling two-factor authentication, verifying website addresses, and regularly reviewing wallet permissions can significantly reduce the risk of becoming a victim of fraud.
Veteran trader Michael XBT is doubling down on his bearish outlook for Bitcoin, even after it has already fallen 12%.
He argues that a major breakdown could trigger a “total destruction” across the market.
In a series of posts on X, the trader said Bitcoin’s next move lower could be severe. He claimed his short positions could generate massive gains if market weakness continues. In his words:
“This next Bitcoin dump is going to be disgusting. My shorts will print so much money it will feel illegal.”
The comments come as Bitcoin trades in the mid-$60,000 range. The asset has dropped 4% over the past day and is currently trading around $66,500. On the weekly timeframe, BTC is down 12%.
Key Points
Veteran trader Michael XBT warns Bitcoin could face a major breakdown, calling the next dump “disgusting.”
He says a decade-long wedge pattern is nearing a critical support test that could trigger heavy selling.
Michael points to bear flag resistance and believes ongoing weakness signals capitulation is underway.
Despite Bitcoin falling 47% from its peak, many bulls still view the pullback as a long-term buying opportunity.
Incoming 10-Year Wedge Breakdown
Michael shared a long-term Bitcoin chart highlighting a decade-long wedge formation. According to him, a decisive break below the lower trendline could trigger a liquidation event similar to the market collapse that followed the FTX bankruptcy in 2022.
He argued that Bitcoin has repeatedly tested a critical support zone. In his view, each retest weakens that support. As a result, he said he would not bet on the support line holding again.
The trader also warned investors against remaining heavily exposed if that support eventually fails.
BTC Bear Flag Resistance
In an earlier market update, Michael said Bitcoin was approaching a final test of bear-flag resistance. He argued that the pattern resembles previous bearish continuation setups. If buyers fail to regain control, he believes history could repeat itself.
The trader noted that the decline had already begun, telling his followers that “capitulation” was underway.
Profitable Short Position
As Bitcoin fell from roughly $75,000 toward the $66,000 area, Michael highlighted a leveraged short position that benefited from the move. He shared a screenshot showing a 20x Bitcoin short posting gains of more than 220%. The position had an entry price near $74,593 and a mark price around $66,280.
Responding to a user who praised his conviction around the $75,000 level, Michael said he had risked his reputation by turning “max bearish” despite criticism from the crypto community.
He acknowledged changing his market bias multiple times. However, he argued that correctly identifying the broader trend is what matters most.
I risked my reputation by flipping MAX BEARISH at 75k.
I received more hate than ever before for simply telling the truth.
If I was wrong, I would’ve been cooked.
Sure, I flipped bias a few times, but I caught the big move in the end.
Michael’s warnings have drawn attention because of his history of making high-profile Bitcoin calls.
The trader became widely known after identifying Bitcoin’s 2022 bottom near $15,000. At the time, he also predicted a future move to $100,000 when market sentiment was deeply negative.
That forecast eventually played out. Bitcoin’s price recovered from its lows and later reached six-figure territory.
While Michael remains convinced that another sharp decline is coming, he has remained silent on how low Bitcoin could fall.
Regardless of the short-term direction, Bitcoin bulls continue to view the long-term trend as intact. Bitcoin is now down 47% from its peak of $126,200, and many investors see the pullback as a favorable entry point ahead of the next uptrend.
Tokentus Investment CEO Oliver Michel has revealed that XRP represents his largest personal and corporate crypto holding.
Michel made the disclosure during a recent appearance on DER AKTIONÄR TV, where he discussed the long-term role of XRP and XLM in global asset tokenization, particularly in relation to the Depository Trust & Clearing Corporation (DTCC).
Key Points
Oliver Michel disclosed that XRP and XLM represent his two largest cryptocurrency holdings.
Michel noted that both assets rank as top allocations in his personal portfolio as well as in the holdings of Tokentus Investment AG.
The Tokentus CEO argued that the financial sector is adopting a multi-chain approach to blockchain tokenization, highlighting a DTCC-related patent document that referenced Ripple’s DLT infrastructure and Stellar’s blockchain network.
Both the XRP Ledger and Stellar ecosystems continue to expand their footprint in the real-world asset (RWA) market, with billions of dollars in tokenized asset value associated with the two networks.
Tokentus CEO Names XRP and XLM as Biggest Crypto Holdings
Notably, Tokentus Investment CEO Oliver Michel openly disclosed his exposure to XRP and XLM. He stated that XRP remains his largest holding, while XLM ranks as his second-largest position both personally and within Tokentus Investment AG’s portfolio.
“[…] XRP is my biggest position. And XLM is also my second-biggest,” Michel said.
He further explained that the allocation reflects not only his personal conviction but also Tokentus’ broader investment strategy.
DTCC Cites Stellar and Ripple DLT System in Patent Tokenization Document
Meanwhile, Michel stressed that the financial industry is adopting a multi-chain blockchain strategy for tokenization-related initiatives. To support his argument, he referenced a DTCC-related patent document that reportedly mentioned both the XRP Ledger and Stellar blockchain infrastructure.
For context, the patent document, titled Systems, Methods, and Storage Media for Managing Digital Liquidity Tokens in a Distributed Ledger Platform, was published in March 2025. The document referenced “Ripple’s DLT system” and Stellar’s blockchain as part of an example tokenization transaction.
Commenting on the development, Michel suggested that many investors may have underestimated its significance. According to him, discussions within the XRP community often focus heavily on price speculation rather than the broader implications of infrastructure adoption.
He also compared the XRP and XLM communities, suggesting that the two ecosystems share similarities, particularly in the enthusiasm of their younger supporter bases.
XRP and XLM Positioned to Benefit From Global Tokenization: Michel
Further, Michel expressed strong confidence that nearly everything will eventually become tokenized. In his view, tokenization will fundamentally reshape global finance, while XRPL and Stellar remain among the blockchain networks best positioned to benefit from the transition.
His remarks came shortly after the DTCC announced a partnership with the Stellar Development Foundation (SDF) to tokenize digital assets held in its custody, valued at more than $100 trillion, on the Stellar network.
The initiative, which is expected to launch in the first half of 2027, aims to give traditional investors easier access to leveraging conventional financial assets within a digital ecosystem.
Stellar and XRPL RWA Tokenization Activity
At the same time, both the XRPL and Stellar networks continue to gain traction in tokenized real-world asset (RWA) initiatives. Currently, XRPL ranks third by represented asset value, with approximately $3.7 billion across 293 tokenized assets, according to data from rwa.xyz. Meanwhile, Stellar ranks seventh, with 24 tokenized assets valued at roughly $579 million.
However, Stellar currently leads XRPL in the Distributed RWA League Table, boasting 43 tokenized RWAs valued at $2.2 billion. In comparison, XRPL holds 19 tokenized assets with a combined valuation of about $384 million.
Leading prediction market and trading platform Kalshi has filed with the CFTC to launch perpetual futures tied to Shiba Inu and XRP.
The development follows the Commodity Futures Trading Commission’s approval of Bitcoin perpetual futures contract last week.
Key Points
Kalshi filed with the CFTC to introduce perpetual futures contracts tied to XRP and Shiba Inu.
The filing follows the recent approval of Kalshi’s Bitcoin perpetual futures contract by the CFTC.
Each XRP perpetual futures contract would represent one XRP, providing direct exposure to the token’s price movements.
Each Shiba Inu perpetual futures contract would represent 1,000,000 SHIB tokens.
Although Kalshi has listed both XRP and SHIB contracts as certified on the CFTC website, neither product has received final approval for live trading.
Kalshi Targets Perpetual Futures for XRP and Shiba Inu
In a notable move, Kalshi submitted several filings with the CFTC to self-certify multiple crypto-related perpetual futures contracts. The filing includes support for multiple digital assets, including XRP, Solana, Stellar, Shiba Inu, Ethereum, and Dogecoin.
Among the listed assets, XRP and Shiba Inu drew significant attention because of their highly active investor communities.
Meanwhile, Kalshi outlined the structure of the proposed Shiba Inu and XRP perpetual futures contracts, showing how traders could gain regulated exposure to the price movements of both tokens in the U.S. market.
Kalshi’s Shiba Inu Filing
For Shiba Inu, the contract’s underlying asset is the spot price of SHIB in U.S. dollars. According to the filing, the CF Shiba Inu-Dollar Spot Rate will serve as the official pricing benchmark.
The SHIB perpetual futures contract would trade continuously, operating 24/7 with a trading unit of 1 million SHIB per contract. In addition, prices would be quoted in U.S. dollars per SHIB, while the minimum price increment would be set at $0.0000000001.
Kalshi further detailed the contract’s funding mechanism, which is designed to keep perpetual futures prices aligned with the spot market. The exchange would calculate funding rates every eight hours at fixed intervals. Depending on market conditions, long traders could pay short traders or vice versa.
Moreover, the exchange established a $5 million position accountability level, highlighting risk management measures for large participants.
XRP Filing
Similarly, Kalshi disclosed that XRP’s contract would track the coin’s spot market price in U.S. dollars. The CME CF XRP-Dollar Real Time Index would act as the official pricing benchmark.
Like the SHIB product, the XRP perpetual futures contract would trade around the clock. Each contract would represent one XRP, with prices quoted directly in U.S. dollars per token.
Kalshi also set the minimum price movement for XRP at $0.0001, with each tick movement carrying the same $0.0001 value per contract. The accountability level for the XRP perpetual futures product is also set at $5 million.
Trading Remains Pending
For context, perpetual futures are derivatives contracts that allow traders to speculate on an asset’s future price without an expiration date. Although Kalshi listed the Shiba Inu and XRP perpetual futures contracts as certified on the CFTC website, regulators have not yet approved them for trading.
Following the approval of Kalshi’s Bitcoin perpetual futures contract, the CFTC signaled that it would take a cautious, case-by-case approach toward approving perpetual futures tied to cryptocurrencies beyond Bitcoin.
The regulator stressed that not every asset class is suitable for perpetual futures products, indicating that officials will individually review each proposed contract before approving.
Evernorth says real banks are already using XRP, citing Société Générale’s launch of its EURCV stablecoin on the XRP Ledger.
The firm now argues the next phase is determining which networks and regulatory frameworks will support wider adoption.
“The next 18 months will be about how much, on which chains, and under which set of rules,” Evernorth wrote in a post on X.
Key Points
Evernorth argues that real banks are already using XRP.
It cited Société Générale’s SG-FORGE, which launched the EURCV stablecoin on XRP Ledger, Ethereum, Stellar, and Solana.
Evernorth says the move shows major banks are already using blockchain for regulated financial products.
The EU’s MiCA framework is providing regulatory clarity and helping drive institutional adoption.
Evernorth believes the next 18 months will reveal which networks can support large-scale adoption.
Société Générale’s Launches EURCV on XRP Ledger
Evernorth highlighted the launch of EUR CoinVertible (EURCV), a euro-backed stablecoin issued by Société Générale through its digital asset subsidiary, SG-FORGE.
The stablecoin launched across several blockchain networks, including the XRP Ledger, Ethereum, Stellar, and Solana. Evernorth noted that EURCV has grown into one of the largest euro-denominated stablecoins in the market.
The firm added that while U.S. dollar stablecoins still dominate the sector, Europe is steadily building its own regulated digital money infrastructure.
MiCA Framework Provides Regulatory Clarity
A major factor behind the launch is the European Union’s Markets in Crypto-Assets Regulation (MiCA).
According to Evernorth, MiCA provides financial institutions with clearer rules for issuing and operating digital asset products in Europe. The framework became fully effective last year and is widely regarded as one of the world’s most comprehensive crypto regulatory systems.
The company compared MiCA’s role in Europe with ongoing efforts in the United States to establish clearer digital asset regulations, including proposals such as the CLARITY Act.
XRP Among Four Blockchain Networks Selected
Evernorth said the choice of blockchain infrastructure may be one of the most important aspects of the development.
The firm noted that when a major global bank selects public blockchains to host a regulated stablecoin, it signals confidence in those networks’ ability to support future financial activity.
Among the many blockchain options available, the XRP Ledger was chosen alongside Ethereum and Solana. This places XRP among a small group of networks considered suitable for hosting regulated euro-denominated digital assets.
Institutional Adoption May Arrive Gradually
Evernorth suggested that blockchain adoption by traditional financial institutions will not be via a single breakthrough announcement.
Instead, adoption will happen gradually as regulated banks and financial firms launch real-world financial products on public blockchains. The company described the EURCV launch as part of this broader trend.
6/6 Why this matters for the bigger picture:
Adoption of blockchain isn't going to look like one big announcement. It's going to look like a lot of regulated, slow-moving institutions quietly putting real money on real networks.
XRP commentator Zach Rector is urging XRP holders to carefully assess the risks before using their tokens as collateral for loans.
In a recent post on X, he stressed that borrowing against crypto assets is not a risk-free strategy. Rector outlined several factors investors should consider before leveraging their XRP holdings to access cash without selling their assets.
Key Points
Zach Rector warns XRP holders to assess risks before borrowing against their crypto holdings.
XRP-backed loans provide liquidity without selling, but increase leverage and liquidation risk.
Rector urges borrowers to review LTV ratios, APRs, fees, and collateral management practices.
XLS-66 could offer XRP yield through lending vaults, though not through automatic interest payment.
Borrowing Without Selling
According to Rector, one of the biggest advantages of borrowing against XRP is the ability to access liquidity without triggering a taxable sale.
Instead of selling XRP, investors can pledge their holdings as collateral and receive a loan. This allows them to keep exposure to potential future price gains.
However, Rector warned that borrowing also adds leverage to an investor’s position, increasing both rewards and risks.
XRP Volatility Remains a Major Risk
Notably, Rector identified XRP’s price volatility as one of the biggest risks borrowers face.
A sharp decline in XRP’s price can reduce the value of collateral. This may trigger margin calls or even forced liquidations if loan-to-value (LTV) requirements fail.
To help manage this risk, Rector advised investors to maintain a conservative LTV ratio. A lower LTV provides a larger buffer against market downturns.
Understanding Loan Terms
Rector also encouraged borrowers to examine the cost of borrowing. This includes reviewing annual percentage rates (APR), upfront fees, and the liquidation policies of lending platforms.
He emphasized the importance of understanding grace periods before liquidation. These periods determine how much time borrowers have to add collateral or repay part of a loan if market conditions move against them.
Questions About Collateral Usage
Another issue highlighted by Rector is how lending platforms handle deposited collateral.
He advised investors to verify whether their XRP is being re-lent or rehypothecated to other parties. Such practices can create additional counterparty risks.
Rector said transparency around collateral management should be a key part of any due diligence process before taking out a crypto-backed loan.
“It’s a Tool, Not Free Money”
Rector concluded by reminding XRP holders that borrowing against crypto assets should be viewed as a financial tool, not an easy source of cash.
His final checklist included a warning not to borrow more than can realistically be repaid, regardless of expectations for future XRP price gains.
The comments come as crypto-backed lending is attracting renewed interest among digital asset investors, many of whom are looking for ways to access liquidity while maintaining exposure to assets such as XRP.
Among the emerging options is the XRP Ledger’s XLS-66 proposal, which aims to bring institutional-grade credit markets to the network.
XLS-66 for Yield
Analysts such as Bodhi Karma have noted that XLS-66 could give XRP holders a way to earn yield, though not through automatic interest payments.
Instead, users would deposit XRP into specialized vaults and receive tokens representing their share of the pool. If the vault generates profits from lending activities, the value of those tokens increases. Users realize those gains only when they redeem their tokens.
The XRP held in these vaults is lent to institutions such as market makers, exchanges, payment providers, and fintech firms. As borrowers repay their loans, the value of the vault increases.
While the framework includes safeguards, risks remain, including borrower defaults and potential liquidity constraints. XLS-66 could provide XRP holders with a new way to generate yield, but returns are not guaranteed and will depend on the performance of the underlying lending activity.
