Edward Farina, the driving force behind Alpha Lions Academy, is sounding the alarm about a potential liquidity squeeze hitting the crypto market, and he sees XRP as a potential lifeline.

He cautions that not all crypto assets might bounce back and see another bull run. This warning comes as the crypto market continues its downward trend, with major players like Bitcoin and Ethereum experiencing significant drops, hitting new lows.

In a recent online post, Farina pointed out that global economic instability is making things even tougher. We’re seeing widespread job losses, rising costs of living, and more people struggling with debt, all of which is impacting the financial world.

According to Farina, institutional investors strategically sold off their Bitcoin when prices climbed past $100,000. He suggests they then orchestrated a move to encourage everyday investors to jump into the market right at its peak.

Farina further argues that Bitcoin’s latest surge to record highs was built on shaky ground, lacking real, solid support, which makes the crypto space particularly vulnerable right now.

Trump’s Involvement Adds to the Trouble

Farina also believes that Donald Trump’s entry into the crypto scene has made things even more complicated. He highlights Trump’s meme coin, TRUMP, launched in January, which has since plummeted by a staggering 90%. Farina argues this sets a worrying example for celebrity-backed tokens, further destabilizing the market.

In addition, Farina contends that the flood of meme coins on Solana has further depleted available funds in the market. To illustrate, he claims that the current level of accessible funds in the market is dramatically lower – four times less than in previous cycles – raising serious questions about the market’s long-term health.

He also believes platforms like Pump Fun are speeding up a culture of quick profits and rapid trading, making it harder for the market to achieve lasting growth.

Many new digital tokens are experiencing almost instant sell-offs, with some losing as much as 99% of their value shortly after launching. This has led traders to increasingly adopt a short-term game plan, prioritizing fast gains over investments with long-term potential.

The analyst emphasizes that while the arrival of spot Bitcoin ETFs and Trump’s support were initially expected to push prices upwards, market sentiment has taken a turn.

Erosion of Trust and Shifting Market Dynamics

Adding to the concerns, Farina points out that listings on decentralized exchanges (DEXs) aren’t carrying the same weight they used to this year. Once seen as a mark of credibility, these listings now mean almost any project, even potentially fraudulent ones, can appear on major platforms within minutes.

Even well-established crypto ecosystems like ATOM, GRT, MATIC, and ETH are still struggling, trading below even their bear market lows, despite having clear real-world applications.

Focus on Utility Coins Like XRP

Edward Farina suggests that the key to navigating the current market downturn is to concentrate on robust technologies and regulated assets that address real-world issues.

He highlights XRP as a leader in this approach, describing its past price surge as being driven by genuine utility. XRP, along with other promising projects such as XLM and HBAR, has shown strong performance.

Farina expresses optimism that these types of projects are positioned for sustainable growth as larger institutions increasingly adopt them.