Interest in XRP, a prominent cryptocurrency, is soaring as exchange-traded funds (ETFs) linked to the token have garnered over $1 billion in inflows in less than two months. This surge in demand has led to the locking up of approximately 746 million XRP, which constitutes just over 1% of the token’s circulating supply. Given this trend, experts predict that ETF assets could reach an impressive $5 billion by mid-2026, potentially removing about 2.6 billion XRP from active circulation—nearly 4% of the total supply.
The growing interest in XRP ETFs is having a significant impact on the token’s availability. Data indicates that exchange balances of XRP have decreased by 58% since 2025, suggesting that many holders are opting to retain their XRP rather than sell. Such a pattern typically indicates a long-term holding strategy, which can lead to reduced selling pressure and, consequently, support for higher prices over time.
Despite the robust inflows into ETFs, XRP has faced challenges in its market performance. Throughout the second half of 2025, its price fell below $2 and struggled to regain this threshold. Analysts are now observing a positive shift, as the price recently rebounded above the macro support level around $1.88, marking a potential turning point if this level is sustained.
Market Dynamics and Future Projections
The next critical area for XRP is whether it can maintain its position above the $1.88 support. Should it do so, the price may advance towards the next resistance level near $2.30. Current price movements do not exhibit strong bearish signals, although short-term pullbacks remain a possibility. The overall market structure appears constructive as long as XRP stays above these key support levels.
If the ETF market reaches the anticipated $5 billion, the implications for XRP could be profound. ETFs typically hold assets for prolonged periods, which reduces the overall supply available to the market. As demand continues to rise while supply tightens, it often results in upward price movements. Some forecasts suggest that XRP could potentially hit $8 by 2026 if ETF inflows remain robust and institutional adoption increases. In particular, Standard Chartered has projected a remarkable 330% increase for XRP, citing enhanced access for institutional investors and an improving market structure.
Nonetheless, any potential price increases will largely depend on observable data rather than speculation. Tracking ETF flows, supply trends, and prevailing market conditions will be crucial in determining XRP’s future trajectory. As the landscape evolves, market participants will need to stay vigilant and informed.
