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- Zafar Naik
Zafar Naik
- Reviewed by:
Qadir AKQadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.
- Jan 20, 2026 11:55 UTC
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Why XRP Could Be the Top Altcoin to Watch in 2026
XRP briefly overtook BNB to become the third-largest crypto by market cap.
Institutional funds flowed into XRP while Bitcoin ETF inflows slowed.
Ripple has deployed $4 billion in acquisitions targeting institutional finance.
XRP jumped roughly 20% in the first week of January, briefly pushing past Binance Coin to become the third-largest cryptocurrency by market cap. For a $120 billion asset, that kind of move turns heads.
A recent Altcoin Buzz analysis pointed out that XRP-focused funds kept seeing inflows during Q4 2025, even while Bitcoin ETF flows slowed down. The channel called XRP a quiet outperformer for months.
“Institutions are liking what they see in Ripple,” the analysis stated.
What’s Driving Institutional Interest in XRP?
Ripple officially closed its SEC case last August, ending years of legal uncertainty. The company now holds Money Transmitter Licenses in over 75 jurisdictions. Around 300 banks and payment providers already use Ripple rails globally.
That regulatory groundwork took years to build, and competitors will struggle to match it.
Ripple’s $4 Billion Shopping Spree
Ripple has spent around $4 billion on acquisitions focused on institutional finance.
The list includes Metaco, a treasury platform, for roughly $1 billion. Hidden Road, a prime brokerage, cost $1.25 billion. Rail, which handles stablecoin-powered payments, came in at $200 million. Palisade added wallet and custody infrastructure.
Ripple also launched RLUSD, a USD-backed stablecoin. The company introduced its Multi-Purpose Token standard for tokenizing real-world assets on-chain.
Risks to Keep in Mind
Ripple controls about 40% of the XRP supply in escrow. Critics have flagged past large sales as a concern. Regulatory risk has dropped since the SEC case ended, but it’s “never zero.”
XRP Price and 2026 Outlook
XRP currently trades near $1.93, about 49% below its all-time high. Altcoin Buzz described the token as “one of the most misunderstood assets” heading into 2026, with fundamentals and institutional backing that favor long-term holders over short-term traders.
“Consistency is something that compounds,” the analysis noted.
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FAQs
Institutional participation tends to influence long-term liquidity, stability, and use cases. It can also shape how XRP is integrated into regulated financial systems rather than speculative trading alone.
By owning custody, brokerage, and payment infrastructure, Ripple can offer end-to-end services to institutions. This may increase XRP’s relevance in settlement and treasury operations over time.
Banks, payment providers, and fintech firms using Ripple’s network could see faster and cheaper cross-border settlements. Long-term XRP holders may benefit if usage expands alongside demand.
Market participants will focus on real-world usage, institutional onboarding, and regulatory developments. Broader crypto market conditions will also influence XRP’s performance.
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