3 Reasons to Buy XRP Before February 2026

While XRP (CRYPTO: XRP) is down almost 20% in 2025, there are plenty of reasons to think that 2026 could be a big breakout year for the world's fifth-largest cryptocurrency.

The date that I'm circling on my calendar is Feb. 11. That's the date of the annual XRP Community Day in 2026. It's also when big news could be coming about three important catalysts that could push XRP higher next year.

New spot XRP ETFs

In November, new spot XRP exchange-traded funds (ETFs) finally started trading after months of anticipation. It's hard not to call their launch a smashing success. Nearly $1 billion flowed into these ETFs in the first 30 days, and these new spot XRP ETFs saw 30 straight days of positive inflows.

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The positive debut of these ETFs is a big reason to be excited about XRP in 2026. They are a tangible sign of investor interest in XRP, especially from large institutional investors. Right now, the new spot XRP ETFs are primarily from smaller issuers. But that could change in 2026, if asset management giant BlackRock (NYSE: BLK) decides to enter the fray.

A $500 million war chest for Ripple

In a further sign of institutional interest in XRP, Ripple (the company behind the XRP coin) lined up $500 million in financing in November from the likes of Fortress Investment Group and Citadel Securities. The new funding values Ripple at a head-spinning $40 billion. That's approaching the same valuation as Bitcoin treasury company Strategy, which currently weighs in at a $45 billion valuation.

Given the role of Ripple in creating and managing XRP, this new funding is huge news. It suggests new use cases and enhanced utility for XRP, as well as new investment in the XRP blockchain ecosystem.

This year saw several major acquisitions by Ripple worth nearly $2.5 billion, and I wouldn't be surprised if there were more acquisitions in 2026. At the very least, news of how these acquisitions fit into the longer-term roadmap for XRP could be forthcoming at XRP Community Day in February.

A new DeFi roadmap for XRP

In 2026, I'm focused on potential ramped-up utility for the XRP blockchain ledger. This is the key to unlocking the true value of XRP.

Right now, the primary use for XRP is as a bridge currency for cross-border payments, and that's not enough to push XRP's price much higher. That's especially the case now that stablecoins (i.e. digital currencies pegged 1-to-1 to the dollar or other asset) have stolen much of the thunder from XRP when it comes to making cross-border payments.

The good news is that Ripple has been working on a new decentralized finance (DeFi) roadmap that focuses on exploiting the full potential of the XRP blockchain ledger. This is something that institutional investors have been pushing for, so it's something that could really move the needle in terms of institutional adoption.

At the same time, Ripple has been pushing for greater integration of its blockchain with the Ethereum blockchain. This is vitally important in terms of driving future value, given how dominant Ethereum is in the world of decentralized finance (DeFi). In short, XRP becomes much more attractive the more closely it is integrated with Ethereum.

How high could XRP soar in 2026?

It's important to keep expectations about XRP in check. Time and time again, XRP (Ripple) has overpromised and underdelivered. That was the case this year, when XRP soared right out of the gate in January, only to end 2025 on a down note.

But I'm starting to see the light at the end of the tunnel. Ripple's long-running legal squabble with the SEC finally wrapped up this year, and there's much more regulatory clarity around XRP. That's great news in terms of utility and overall institutional adoption.

For that reason, I'm looking forward to February. That's when XRP might skyrocket in value. If Standard Chartered is right, this mercurial token could soar to a price of $8 next year. Given its current price of less than $2, that's a stunning quadrupling in value within a very short period of time.

So, if you're looking for an explosive, high-upside cryptocurrency trading at bargain-basement prices, look no further than XRP.

Dominic Basulto has positions in Bitcoin, Ethereum, and XRP. The Motley Fool has positions in and recommends Bitcoin, Ethereum, and XRP. The Motley Fool recommends BlackRock and Standard Chartered Plc. The Motley Fool has a disclosure policy.