Where Will XRP (Ripple) Go Next?
Key Points
XRP is entering 2026 with dramatically lower U.S. regulatory uncertainty.
Spot U.S. XRP ETFs have witnessed impressive institutional demand.
However, XRP still needs a significant increase in real-world usage to sustain upside.
- 10 stocks we like better than XRP ›
Ripple (CRYPTO: XRP) is trading around $1.57 at this writing, significantly down from its early January high of around $2.40.
Investors are now concerned whether the cryptocurrency will climb on renewed institutional demand or drift lower as speculative momentum fades.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Image source: Getty Images.
The bullish thesis
XRP entered 2026 in a far stronger U.S. regulatory position than in previous years. In August 2025, the U.S. Securities and Exchange Commission (SEC) ended its case against XRP's parent company, Ripple Labs. While Ripple agreed to pay a $125 million fine, the settlement also reinforced the July 2023 verdict that XRP is not treated as a security when sold on public exchanges.
While this regulatory clarification has not changed XRP's underlying fundamentals, the improved institutional credibility led to the launch of U.S. spot XRP exchange-traded funds (ETFs) in late 2025. By mid-January 2026, XRP ETFs had attracted $1.37 billion in cumulative net inflows.
Ripple is also working toward becoming a full-stack digital asset infrastructure provider through acquisitions such as that of global prime brokerage firm Hidden Road for $1.25 billion, stablecoin payments platform Rail for $200 million, and treasury management platform GTreasury for $1 billion. This move could further strengthen XRP's role in transaction settlement, liquidity management, and other new use cases.
The bearish thesis
Momentum has cooled, as U.S. XRP ETFs witnessed significant fund outflows in January 2026. FXStreet reported the largest single-day spot XRP outflow of $93 million on Jan. 30, bringing cumulative inflows down toward $1.17 billion.
Additionally, according to Foresight News, the daily total fees for XRP transactions globally declined from 5,900 XRP per day in early February 2025 to 650 XRP per day in mid-December 2025 -- levels last seen five years ago. Fees are an important metric for assessing the usage and economic viability of XRP, which has been primarily designed for cross-border payments.
Hence, XRP could see significant volatility in the next few months. However, the long-term upside depends heavily on XRP's real-world usage and not just on news and ETF flows.
Should you buy stock in XRP right now?
Before you buy stock in XRP, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and XRP wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $431,111!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,105,521!*
Now, it’s worth noting Stock Advisor’s total average return is 906% — a market-crushing outperformance compared to 195% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of February 5, 2026.
Manali Pradhan, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends XRP. The Motley Fool has a disclosure policy.
Recommended Articles
