Analyst consensus increasingly points to institutional demand as the core factor supporting the argument that XRP remains undervalued as it heads into 2026, despite trading at around US$1.86 as of December 24, 2025.
A major pillar of this thesis is the rapid uptake of spot XRP exchange-traded funds. Since their launch in late 2025, XRP ETFs have attracted more than US$1 billion in net inflows within the first month alone. Market participants view this as a clear signal that institutional investors are seeking regulated exposure to XRP, shifting demand dynamics beyond retail speculation.
Price expectations reflect this optimism. Several analysts estimate XRP’s fair value for 2026 in the range of US$5 to US$10, based on projected growth in network usage and expanding institutional adoption. Among the more bullish forecasts, Standard Chartered’s Geoffrey Kendrick has publicly pointed to an US$8 target, arguing that XRP stands to benefit disproportionately from clearer regulation and increased use in cross-border settlement.
Supply-side trends are also reinforcing the bullish narrative. Data shows that the amount of XRP held on exchanges has dropped by roughly 45% in just two months, as more tokens move into long-term custody. If institutional inflows persist, analysts argue this tightening supply could amplify price movements, creating conditions for a potential supply squeeze.
However, the undervaluation thesis is not without pushback. Critics note that many banks and financial institutions leverage Ripple’s payment and messaging infrastructure without necessarily holding XRP itself, limiting direct token demand. Others point to XRP’s large circulating supply, approximately 57 billion tokens, as a structural constraint that could make extremely high valuations difficult to sustain.
Ultimately, whether XRP re-rates meaningfully in 2026 will depend on several converging factors: sustained institutional inflows, broader real-world use of the token in cross-border payments, and continued regulatory clarity across major markets. While momentum has clearly shifted in XRP’s favor, analysts remain divided on how much of that optimism can realistically translate into long-term price appreciation.
XRP spot ETFs attract over US$1.2bn in assets as institutional interest builds
