XRP (XRP Ledger) returns to the $2 mark, with a 24-hour trading volume of $2.425 billion

Gate News Bot Message, January 04, according to CoinMarketCap data, at press time, XRP (XRP Ledger) is trading at $2.06, up 0.56% in the past 24 hours, reaching a high of $2.06 and a low of $1.81, with a 24-hour trading volume of $2.425 billion. The current market capitalization is approximately $125.024 billion, an increase of $7.02 million from yesterday, ranking 4th in market cap.

XRP Ledger (XRPL) is a decentralized public blockchain, jointly led by a global community of businesses and developers. The blockchain has proven to be fully reliable over more than a decade of operation, maintaining error-free records for over 63 million ledgers. XRPL features smooth development, low transaction costs, high performance, and sustainability, enabling developers to confidently build and advance key projects.

Core advantages of XRPL include transparent and decentralized operation, simplified development tools and comprehensive documentation, high throughput capable of settling thousands of transactions per second, transaction fees as low as a few cents, and an active community composed of enterprises, developers, validators, and users. The blockchain has built-in high-performance decentralized exchanges, cross-currency payment settlement, payment channels, multi-signature validation, and other features, supporting all currencies except XRP as tokens on-chain. Currently, the XRPL community is developing new features such as smart contract functionality and automated market makers, further expanding the platform’s application ecosystem.

Recent Key Market Drivers for XRP

1️⃣ Institutional Spot ETF Continues Net Inflows, Long-term Allocation Demand Remains Steady

Since its launch in November, the US spot XRP ETF has accumulated net inflows of over $1.2 billion, with assets under management surpassing $1.24 billion, maintaining seven consecutive weeks of stable capital inflows, with an average weekly increase of about $64 million. Franklin Templeton’s XRPZ fund holdings have broken 100 million XRP for the first time, reaching 101.5 million XRP, with a holding market value of $1.927 billion, a monthly increase of over 100%. Leading asset managers like Canary Capital, Grayscale, and Bitwise have launched related products. While Bitcoin ETFs experienced outflows of $2.9 billion and Ethereum ETFs saw inflows of $59.5 million, XRP ETFs still maintained contrary net inflows, with a single-day net inflow reaching $70.2 million last week, highlighting long-term institutional recognition of XRP’s strategic value and indicating a preliminary medium-term asset allocation framework in the market.

2️⃣ Rapid Expansion of Cross-Chain Ecosystem and Broader DeFi Applications

Wrapped XRP has been launched on multiple mainstream networks including Solana, Ethereum, Optimism, Ink, and Unichain, in partnership with Hex Trust and LayerZero, supported 1:1 by native XRP. During initial launch, over $100 million in liquidity was locked. Ripple’s stablecoin RLUSD has initiated multi-chain pilot programs, launched on Ethereum Layer 2 via Wormhole protocol. Flare and DeFi platforms Upshift Finance and risk management firm Clearstar have launched XRP yield products earnXRP, allowing users to deposit FXRP into vaults to earn XRP-denominated yields. The total value of tokenized real-world assets on XRPL has exceeded $568 million, with a 2200% increase year-over-year, including RLUSD accounting for over 50% (~$293 million), and OpenEden TBILL Vault approximately $61.46 million. These cross-chain and RWA developments mark a strategic shift of the XRP ecosystem from single-chain to multi-chain, creating new application scenarios for real-world asset tokenization and yield protocols.

3️⃣ International Financial Institutions Are Optimistic, Medium-Long Term Price Outlook Clear

Standard Chartered’s Global Head of Digital Asset Research expressed optimism about XRP, expecting its price to rise to $8 by 2026, representing a potential increase of 288% from the current $2.06. This judgment is based on the combined effect of spot XRP ETF capital inflows, improved global liquidity management, and XRPL’s application prospects in cross-border payments. Several technical analysts also give similarly optimistic long-term forecasts based on structural and fractal analysis, with some predicting XRP could surge above $15 before 2026, reflecting a consensus recognition of XRP’s medium- to long-term value in traditional finance and technical analysis fields, further strengthening its position as a mainstream crypto asset.

4️⃣ Policy Environment Improvement Signals Positivity, Modernization of Payments Topic Gains Attention

The current US President’s public speeches emphasize modernizing the financial system through faster payment infrastructure and advanced crypto technologies, specifically mentioning “accelerated payments” and “next-generation financial technology,” which are interpreted by the market as positive signals for blockchain and crypto payment solutions. As an asset designed for cross-border payments, XRP’s technical positioning aligns with current policy reforms. The Japanese government plans to reduce the crypto investment income tax rate from the maximum 55% to 20%, and intends to launch more ETF products linked to specific cryptocurrencies. Japan has launched its first XRP ETF and established long-term cooperation with Ripple through channels like SBI Holdings in the cross-border payment sector. These policy changes create a more favorable environment for XRP’s practical application.

5️⃣ Exchange Reserves Drop to Seven-Year Low, On-Chain Supply Structure Improves

Centralized exchange holdings of XRP have fallen to about $2.6 billion, a new low since July 2024, but on-chain data shows exchanges actually hold about 16 billion XRP, indicating investors are shifting tokens into self-custody wallets, with relatively limited short-term circulating supply. Although Ripple plans to unlock 1 billion XRP in January 2026, historical data shows that about two-thirds or even up to four-fifths of unlocked XRP are often quickly re-escrowed, with limited actual market circulation. The 30-day moving average of whale fund flows shows selling pressure has weakened. While social sentiment remains somewhat weak in the short term, historical experience suggests such extreme emotions often occur near bottom phases, creating conditions for rebounds.

6️⃣ Derivatives Market Matures, Institutional Trading Infrastructure Improves

CME Group has launched XRP futures based on spot prices, with nominal trading volume reaching hundreds of billions of dollars, making it one of the fastest assets to surpass high open interest. XRP futures now support TAS (Trade at Settlement), allowing traders to settle at the closing price of the day, further facilitating institutional hedging and trading. Institutions generally adopt a “derivatives-first” strategy, using futures, swaps, and margin structures to control risk and gradually expand exposure. These infrastructure improvements reflect XRP’s transition from a highly volatile crypto asset to a tradable financial instrument suitable for institutions. The ongoing maturity of institutional trading ecosystems lays a solid foundation for XRP’s long-term value discovery.

This message is not investment advice. Please be aware of market volatility risks.