XRP (XRP) increased by 3.17% in the last 24 hours

Gate News Bot Message, January 05: According to CoinMarketCap data, at the time of press, XRP (XRP) is trading at $2.13, up 3.17% in the past 24 hours, with a high of $2.16 and a low of $1.81. The current market capitalization is approximately $129.224 billion, an increase of $3.969 billion from yesterday.

XRP Ledger is a blockchain born for business, jointly led by a global community of enterprises and developers. The blockchain has demonstrated over ten years of error-free operation, offering a smooth development experience, low transaction costs, high performance, and sustainability. XRP Ledger is open, decentralized, and open-source, allowing anyone to build on it; it provides efficient development tools and documentation to shorten time-to-market; it supports thousands of transactions per second; each transaction costs only a fraction of a cent, enough to support various blockchain applications; it has an active community composed of enterprises, developers, validators, and users; and has been tested through over 10 years and more than 63 million ledgers of uninterrupted operation. Built-in powerful features include decentralized exchanges, cross-currency payments, payment channels, multi-signature, and token functions.

Analysis of Recent Key Drivers for XRP

1️⃣ Continuous net inflow of spot ETF funds, steady institutional allocation demand

Since the launch of the US spot XRP ETF in November, it has accumulated net inflows of over $1.2 billion, with assets under management surpassing $1.25 billion, maintaining a stable weekly inflow for seven consecutive weeks. Franklin Templeton’s XRPZ fund holdings have broken 100 million XRP for the first time, reaching 101.5 million XRP, with a market value of $1.927 billion, over 100% growth this month. 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 $59.5 million in outflows, XRP ETFs still maintained net inflows against the trend, with a single-day net inflow reaching $70.2 million last week, highlighting long-term institutional recognition of XRP’s strategic value and indicating that the mid-term asset allocation framework is taking shape.

2️⃣ Market heat ranking rises to second place, attention and capital attraction increase simultaneously

According to CoinMarketCap data, XRP’s heat ranking has risen to second globally, only behind Bitcoin, surpassing Ethereum. The current market liquidity is abundant, with XRP trading volume reaching $2.425 billion in the past 24 hours, significantly higher than before. In the context of US spot crypto ETFs surpassing $2 trillion in total trading volume and doubling in just eight months, XRP’s spot ETF has accumulated over $1.2 billion since its launch last November, becoming a typical high-growth track, reflecting investors’ active support for XRP’s mid-term allocation value.

3️⃣ Cross-chain ecosystem expansion and RWA application breakthroughs, accelerating deployment of application scenarios

Wrapped XRP has been launched on multiple mainstream networks including Solana, Ethereum, Optimism, Ink, and Unichain, supported 1:1 by native XRP through Hex Trust and LayerZero, with over $100 million in liquidity locked at launch. Ripple’s stablecoin RLUSD has initiated multi-chain pilot projects, launched on Ethereum Layer 2 via Wormhole protocol. The total value of tokenized real-world assets on XRP Ledger has exceeded $568 million, with a 2200% increase year-over-year, including RLUSD accounting for over 50%, approximately $293 million, and OpenEden TBILL Vault about $61.46 million. These developments mark a deep evolution of the XRP ecosystem from single-chain to multi-chain strategies, creating new application scenarios for real-world asset tokenization and yield protocols, and driving XRP’s transition from a pure payment asset to a financial infrastructure upgrade.

4️⃣ Exchange reserves drop to a seven-year low, on-chain supply structure improves

Centralized exchange holdings of XRP have fallen to about 1.6 billion, a new low since 2018, down approximately 57% from the peak at the end of 2025. 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 usually quickly re-escrowed, with limited actual flow into the secondary market. Continuous tightening of supply and ETF demand resonate, providing medium- to long-term price support. The 30-day moving average of whale fund flows shows selling pressure has weakened. While social sentiment remains short-term weak, historical experience suggests such extreme emotions often appear near phase bottoms, creating conditions for rebounds.

5️⃣ International financial institutions are optimistic about medium- and long-term prospects, regulatory environment improvements send positive signals

Standard Chartered’s global digital assets research head expressed optimism about XRP, expecting its price to rise to $8 by 2026, a potential increase of 280% from the current $2.13. The current US president’s public speeches emphasize modernizing the financial system through faster payment infrastructure and advanced crypto technologies, mentioning “accelerated payments” and “next-generation financial technology,” which market interprets 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. Japan plans to reduce crypto investment income tax from a maximum of 55% to 20%, and to launch more ETFs linked to specific cryptocurrencies, creating a more favorable environment for XRP’s practical application.

6️⃣ Derivatives market maturity and institutional trading infrastructure improvement

CME Group has launched XRP futures based on spot prices, with nominal trading volume reaching hundreds of billions of dollars, becoming one of the fastest assets to break through high open interest. XRP futures now support TAS (Trade at Settlement), allowing investors to trade at the settlement 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, gradually expanding exposure. These infrastructure improvements reflect XRP’s transition from a highly volatile crypto asset to an institutional-grade financial instrument, with a mature trading ecosystem laying a solid foundation for long-term value discovery.

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