The week of July 20-26, 2025, saw notable movements in the cryptocurrency market, with XRP experiencing a price dip and Ethereum facing a potential supply shock.
XRP's price experienced a notable drop, with analysts characterizing it as a "healthy correction". On Thursday, XRP's price dropped as much as 19% to an intraday low of $2.95 from its multiyear high of $3.66. This decline occurred in tandem with a broader crypto market dip, which saw a 3% decrease over a 24-hour period, bringing the total market capitalization to $3.79 trillion. Despite the significant drop, analysts suggest that this pullback is a normal and even beneficial part of market dynamics, with some maintaining double-digit price targets for XRP. Market analysts attribute the drop to broader liquidation pressures rather than XRP-specific risks, with no regulatory interventions reported during the period. Historical patterns suggest XRP's short-term volatility often resolves into consolidation phases without lasting damage.
The drop followed a period of explosive growth for XRP, which had surged 50% since a breakout on July 7, 2025, reaching a peak of $3.60 before settling around $3.42. This rapid ascent was fueled by market momentum and Fear Of Missing Out (FOMO), though without any specific news or adoption catalyst.
Amidst the volatility, Ripple executives, including CEO Brad Garlinghouse and CTO David Schwartz, downplayed long-term concerns, asserting that the dip reflected short-term dynamics rather than a fundamental threat to XRP's viability. Garlinghouse also cautioned users against deepfake fraud and unverified XRP-related schemes.
While XRP experienced a price correction, Ethereum is facing a potential supply shock. Factors contributing to this include a surge in staking, with over 29.03% of the total ETH supply locked, leaving approximately 121 million ETH in circulation. Additionally, major companies like BitMine Immersion Technologies are aggressively accumulating ETH, further reducing the available supply.
BitMine announced it had purchased 566,776 ETH, worth over $2.03 billion, in just 16 days and is aiming to acquire and stake 5% of the overall ETH supply. This accumulation trend is also reflected in the holdings of Ethereum ETFs, which have attracted significant inflows. Between May 15 and July 20, Ethereum ETPs attracted over $5 billion in net inflows, while publicly traded firms amassed 2.83 million ETH, worth over $10 billion.
This supply-demand imbalance has led to predictions of further price increases for Ethereum, with Galaxy Digital's CEO suggesting that Ether could outperform Bitcoin within the next six months. Bitwise CIO Matt Hougan highlighted Ethereum's supply dynamics and noted that ETH ETFs and treasury firms acquired over 2.83 million ETH since mid-May. This represents 32 times more than newly issued ETH in the same period. Some analysts foresee a potential breakout to $5,200 based on technical analysis.
The contrasting narratives of XRP's healthy correction and Ethereum's potential supply shock highlight the dynamic and often unpredictable nature of the cryptocurrency market. While XRP's dip served as a reminder of the market's volatility, Ethereum's supply dynamics suggest a potentially bullish outlook.
