- Pumpius argues crypto prices, especially XRP, are heavily driven by derivatives.
- XRP is a prime target due to deep liquidity and active futures markets, creating repeated cycles of drawdowns and sharp rallies.
- He noted that while traders focus on volatility, long-term XRPL infrastructure is quietly being built.
Crypto analyst and pundit Pumpius has drawn attention to what he describes as a largely unseen layer of the cryptocurrency market, where large pools of capital operate through derivatives rather than spot trading.
According to Pumpius, these actors are less concerned with blockchain technology or long-term fundamentals and more focused on leverage, volatility, and short-term price extraction.
He argues that perpetual futures, funding rates, and forced liquidations have turned crypto into an ideal environment for capital strategies that thrive on sharp price movements rather than organic growth.
Why XRP Sits in the Crosshairs
Pumpius claims XRP is particularly exposed to this behavior due to its deep liquidity, global name recognition, and significant derivatives market activity. These characteristics, he suggests, make XRP attractive for short-term positioning that can amplify volatility.
In his view, repeated cycles of price declines followed by sharp rallies are not random market behavior. Instead, he frames them as deliberate phases where leverage builds during drawdowns and liquidations cascade during rapid upward moves, creating a continuous loop of value extraction from over-leveraged traders.
Also Read: Analyst: XRP to Hit $27 During Wave 3 Cycle – Here Are Key Levels to Watch
There is a side of crypto most people never see.
Entire cartels of capital operate in the shadows of derivatives markets. They do not care about technology. They care about leverage. Volatility is their product, and crypto is the perfect playground.
Perpetuals. Funding rates.… pic.twitter.com/7XaOYFvGWA
— Pumpius (@pumpius) December 21, 2025
According to Pumpius, this dynamic results in what he describes as “extraction” rather than genuine price discovery. He emphasizes that these short-term movements do not necessarily reflect the underlying state of XRP or the XRP Ledger or its long-term utility, but rather the mechanics of leveraged trading. However, he also stresses that short-term market manipulation does not invalidate long-term strategic positioning.
Infrastructure Development Beyond the Charts
While traders focus on short-term price action, Pumpius argues that significant infrastructure development is occurring largely out of public view. He points to identity systems, compliance frameworks, and settlement layers being built on the XRP Ledger as examples of foundational work that continues regardless of market volatility.
Central to this narrative is DNA Protocol, which Pumpius describes as a key component in anchoring identity and verification architecture on XRPL. He suggests that governments and institutions are methodically deploying these systems while broader market attention remains fixed on short-term price fluctuations.
A Long-Term Thesis on Infrastructure Assets
Pumpius frames this contrast as the basis for what he calls asymmetric opportunity. Rather than chasing price momentum or reacting to market swings driven by derivatives, he advocates understanding the underlying architecture and positioning around infrastructure assets before broader adoption becomes visible.
In closing, Pumpius urges market participants to look past what he characterizes as short-term manipulation and focus on the long-term trajectory of blockchain infrastructure.
While his perspective reflects personal analysis and conviction rather than verified outcomes, it underscores a recurring theme in crypto markets: price volatility can mask deeper structural developments that unfold over much longer timelines.
Also Read: US Government Paper Reveals Ripple (XRP) as “Trusted Architecture”? – Here’s What’s Trending
