These Five Key Drivers Could Boost XRP To $5 By 2026, Claims Top Analyst

Overview

XRP has recently experienced a decline, falling below the $2 mark as a result of a broader market correction that has affected investor sentiment. Market analyst Sam Daodu has outlined five key catalysts that could potentially propel XRP to $5 by 2026, emphasizing the importance of these factors in overcoming barriers that have hindered its price growth.

Key Catalysts for XRP’s Growth

In a comprehensive report, Daodu identified several specific factors that could contribute to a significant rise in XRP’s value. Each of these catalysts addresses different challenges that have kept XRP’s price relatively stagnant in recent months.

BlackRock-Backed XRP ETF

One of the primary catalysts highlighted by Daodu is the potential for a BlackRock-backed XRP exchange-traded fund (ETF). Since mid-November 2025, spot XRP ETFs have reportedly gained over $1 billion in cumulative inflows. If BlackRock proceeds with its ETF, estimates suggest that the inflows could exceed $2 billion. This influx of capital could reshape market demand for XRP, solidifying its position as the only cryptocurrency linked to a fully regulated token in the United States. Such developments would significantly bolster XRP’s case for reaching the $5 mark.

Ripple and SBI Holdings Collaboration

Another critical factor is the evolving role of Japan in the XRP narrative. Ripple, in partnership with SBI Holdings, plans to launch RLUSD—Ripple’s USD-backed stablecoin—in Japan by the first quarter of 2026, contingent on regulatory approval. The introduction of RLUSD on the XRP Ledger (XRPL) could create substantial demand for XRP as a bridge currency, further supporting the potential for it to reach $5, albeit gradually over time.

Asset Tokenization

The tokenization of assets is also a significant catalyst identified by Daodu. Ripple’s expanded partnership with Archax aims to facilitate the introduction of “hundreds of millions of dollars” in tokenized equity, debt, and funds onto the XRP Ledger by mid-2026. Capturing even a modest share of the tokenized asset settlement market could lead to a considerable increase in demand for XRP, thereby reinforcing its goal of reaching $5.

Macroeconomic Conditions

Macroeconomic policy is another vital element influencing XRP’s upside potential. Anticipated rate cuts by the Federal Reserve (Fed) could lead to decreased returns on cash and short-term bonds, pushing capital toward riskier assets that promise growth and liquidity. This environment could potentially favor XRP as an investment option.

Supply Dynamics and Holder Behavior

Recent on-chain data has revealed a notable shift in supply dynamics for XRP. Approximately 1.35 billion XRP has been withdrawn from exchanges in less than two months, with balances dropping from around 3.95 billion tokens to approximately 2.6 billion. This shift indicates a behavioral change among holders, as many are opting to transition XRP into long-term storage solutions. Such withdrawals could create a tighter supply, further supporting the price potential.

Daodu emphasizes that the journey to the $5 mark will require a convergence of these various factors, including strong ETF inflows, institutional adoption, and favorable macroeconomic conditions.

From author

The analysis provided by Daodu presents a multi-faceted approach to understanding the potential future of XRP. Each identified catalyst not only highlights the complexity of market dynamics but also illustrates the interconnectedness of various factors influencing cryptocurrencies. The focus on regulatory developments, partnerships, and macroeconomic trends serves as a reminder of the broader context in which cryptocurrencies operate.

Impact on the crypto market

• The potential for a BlackRock-backed XRP ETF could significantly influence investor sentiment and market dynamics.
• The launch of Ripple’s RLUSD stablecoin in Japan may increase demand for XRP as a bridge currency.
• The tokenization of assets on the XRP Ledger could lead to substantial capital inflows, enhancing XRP’s market position.
• Macroeconomic policies, particularly Fed rate cuts, may drive investors towards cryptocurrencies like XRP.
• The notable decrease in exchange-held XRP may signal a shift in market behavior, potentially affecting supply and demand dynamics.