XRP Surges in 2026: Will Institutional Investors Propel Growth?

XRP has experienced a strong start to 2026, with a notable rally that saw the cryptocurrency rise by 25% in the first week, climbing from December lows of approximately $1.77 to a peak of $2.38 on January 6. As of now, XRP trades at $2.07, remaining 43% below its all-time high of $3.65 reached in July 2025. This surge marks one of the most significant short-term performances for XRP in recent years, successfully reclaiming the $2.00 psychological barrier and testing resistance near $2.40 before entering a phase of consolidation.

Institutional Interest Fuels XRP’s Momentum

A critical driver behind this bullish trend is the arrival of US spot XRP exchange-traded funds (ETFs). Over the course of just 50 trading days, these ETFs have attracted $1.3 billion in net inflows, achieving 43 consecutive days of positive inflows without any outflows. The total assets managed across seven XRP ETFs now amount to $1.5 billion, effectively locking up approximately 793 million XRP in custody. This places XRP as the second-fastest cryptocurrency, following Bitcoin, to reach the $1 billion inflow milestone.

If monthly inflows maintain an average of $300-$500 million, it is projected that ETFs could effectively remove 2-3 billion XRP from the liquid supply throughout 2026, tightening market conditions significantly.

Shifting Supply Dynamics and Future Projections

On-chain data reinforces the growing institutional interest. The balance of XRP held on exchanges has dropped from around 4 billion tokens at the start of 2025 to about 1.7 billion by year-end, representing a decline of 57%. Although Ripple’s monthly escrow releases continue to play a role, most unlocked tokens have been quickly re-escrowed, limiting the net new supply in circulation. This shrinking exchange float suggests a rising demand, which could exert a strong positive influence on prices, especially during riskier market periods.

Looking ahead, a leap to $4 for XRP in 2026 remains plausible but hinges on several key factors. First, a high-profile ETF filing or endorsement from a significant asset management firm could catalyze further inflows. Additionally, if Ripple’s stablecoin, RLUSD, gains traction in settlement and collateral workflows, it would inherently increase the usage of the XRP Ledger. Lastly, macroeconomic trends, including anticipated rate cuts by the US Federal Reserve, historically boost interest in large-cap altcoins.

In a positive forecast, Standard Chartered’s Global Head of Digital Assets Research, Geoffrey Kendrick, asserts that XRP could rise to $8 by 2026. Kendrick’s analysis suggests that XRP will effectively capture a significant share of the cross-border payment market and benefit from the sustained institutional inflows generated by regulated investment products. He projects a price of $5.50 for 2025 and $12.50 for 2028, indicating a strong belief in XRP’s long-term potential.