Negative market depth paints one picture, and XRP is all over it. According to Kaiko’s latest report, XRP and SOL have ETF hopes, but have an average depth of 1%, with XRP even outpacing Solana and doubling that of ADA.
Liquidity has surged since late 2024, likely riding the ETF optimism and the shifting U.S. policy climate. But options traders aren’t buying it, quite literally. Kaiko flagged a bearish skew in Deribit’s XRP options for the April 18 expiry. The volatility smile is tilted significantly to the downside, meaning traders are pricing in protection against a drop, rather than a rally.
In the report, Kaiko highlighted what makes XRP different from assets like Bitcoin and Ethereum, both of which have seen massive institutional interest shortly after their respective ETFs went live:
XRP is quite different; it doesn’t have an active futures market—for now—and its volume is heavily concentrated offshore.
So, in short, while the narrative screams ETF hype, the options market suggests caution. Kaiko chalks up the pessimism to broader macro jitters, not necessarily XRP-specific weakness, but it still signals that smart money isn’t leaning bullish just yet.
Ripple Whales Are Offloading XRP
Ripple’s recent $1.2 billion prime broker acquisition was a flex, no doubt. And the legal overhang may be fading. But until there’s a regulatory green light and the market sentiment to match, XRP still has to prove it’s ready for prime time.
However, things are not looking good for XRP. As CryptoMode reported, whales have sold nearly $1 billion in XRP tokens following the resolution of Ripple’s lawsuit. The sale didn’t quite help the XRP price, which has gone through multiple ups and downs today, as seen by the CoinGecko chart below:
Read more: Ripple vs. SEC: U.S. Appeals Court Puts Case On Hold as Settlement Talks Advance
