The cryptocurrency landscape continues to evolve, and XRP, one of the most well-known digital assets, is making significant strides. According to a recently released outlook from crypto asset manager 21Shares, XRP could reach new heights by 2026, driven by surging ETF demand and decreasing exchange supply.
XRP’s 2026 Outlook: Price Predictions and Key Drivers
21Shares has projected a base-case price target of $2.45 for XRP, with a bullish scenario pushing the value up to $2.69. In a bearish case, where adoption slows, the price could retrace to $1.60. These calculations follow the explosive launch of XRP spot ETFs in the United States.
Within its first month, XRP ETFs amassed over $1.3 billion in assets under management (AUM). This period also saw a record-breaking 55-day streak of continuous inflows, setting a benchmark across all asset classes. XRP’s market cap currently stands at approximately $113 billion, about one-eighth of Bitcoin’s valuation when its ETFs debuted.
Supply Constraints and Institutional Buying
One of the standout factors influencing XRP’s price is its dwindling exchange supply. Reserves have reportedly dropped to a seven-year low of 1.7 billion XRP. At the same time, institutional demand through ETFs is running up against a retail segment that is holding strong. This imbalance has created unique market dynamics favoring price appreciation.
Ripple’s RLUSD Stablecoin: A Growth Catalyst
Another exciting development is Ripple’s RLUSD stablecoin, which has seen meteoric growth. The stablecoin’s market cap has surged by over 1,800% in less than a year, jumping from $72 million to $1.38 billion. Currently, it boasts more than 37,000 holders, positioning RLUSD as a key growth driver within the ecosystem.
By comparison, Circle’s USDC only grew 269% in its first year, showcasing how Ripple’s financial products are uniquely gaining momentum.
Challenges to Watch Out For
While these trends are promising, 21Shares has highlighted potential risks that could hinder XRP’s growth. These include the risk of slowing ETF inflows following sentiment shifts and competition from networks such as Solana and Canton, which are targeting real-world asset tokenization. Additionally, there’s the possibility of a “sell the news” scenario if XRP’s utility doesn’t expand despite favorable conditions.
XRP is currently trading at $1.93, showing a positive 2.31% change in the past 24 hours. Long-term investors and enthusiasts continue to keep an eye on its performance as it enters a transformative phase.
Enhance Your Crypto Journey
If you’re looking to explore XRP further or dive into crypto trading, products like the Ledger Nano X Cryptocurrency Wallet are essential. Designed for secure storage of your assets, this wallet ensures you are ready for the future while safeguarding your investments. Learn more here.
Stay informed with the latest updates on cryptocurrency trends and market insights by following reliable sources. Ensuring a diversified portfolio and keeping tabs on new developments like XRP ETFs can position you for success in the ever-changing crypto landscape.
