XRP Is the Solution to the Crypto Market's Liquidity Crisis, Claims Alpha Lions Academy Founder Edward Farina

Edward Farina, founder of Alpha Lions Academy, has highlighted a liquidity crisis in the crypto market but presented XRP as the solution.

Edward Farina, the founder of Alpha Lions Academy, has highlighted a liquidity crisis in the crypto market and presented XRP as the solution.

Many Crypto Assets May Not See Another Bull Cycle

This analysis comes amid the ongoing downtrend in the market, where top-cap cryptos like Bitcoin and Ethereum are plummeting to record levels.

In his post, Farina noted that global economic instability has intensified. There have been widespread layoffs, rising inflation, and increasing credit delinquencies affecting financial markets.

He claimed that institutional investors exited Bitcoin holdings when prices exceeded $100,000. Meanwhile, they initiated a strategic campaign that encouraged retail investors to enter the market at its peak.

Farina also claimed that Bitcoin’s recent all-time highs were artificially driven without solid support, leaving crypto vulnerable.

President Trump Worsened Things

Farina believes that President Donald Trump’s involvement in the sector has further complicated the situation. He cited his January-launched meme coin TRUMP, which has tanked by 90%. This event set further precedent for celebrity-driven token launches, worsening instability.

Furthermore, Farina argued that meme coins on Solana have drained liquidity further. For context, he asserted that liquidity levels in the market are four times lower than previous cycles, raising concerns about sustainability.

In his view, platforms like Pump Fun have accelerated a culture of farming and rapid trading, making it difficult for the market to sustain growth.

Many new tokens experience near-immediate sell-offs, with some plunging 99% shortly after launch. Hence, traders have increasingly shifted to a short-term mindset, prioritizing rapid profits over long-term value.

The analyst pointed out that the introduction of spot Bitcoin ETFs and Trump’s presidential support were expected to drive prices higher, yet market sentiment has shifted.

Decline in Trust and Market Structure Shifts

In parallel, Farina asserted that decentralized exchange (DEX) listings have lost their former significance this year. Once considered a sign of legitimacy, these listings now allow even fraudulent projects to appear on major platforms within minutes.

Even established ecosystems like ATOM, GRT, MATIC, and ETH continue to struggle, trading below bear market lows despite their fundamental use cases.

Focus on Utility Coins Like XRP

According to Edward Farina, focusing on superior technologies and regulated assets that solve real-world problems to thrive during the market meltdown is crucial.

He pointed out that XRP leads the way in this narrative, describing its previous uptrend as a utility-driven bull run. XRP has shown strong performance alongside other promising projects like XLM and HBAR.

Farina believes that these projects are in for sustainable growth as institutional adoption accelerates.