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Could These Five Key Drivers Propel XRP to $5 by 2026? Here’s What a Top Analyst Says.
XRP, the fifth-largest cryptocurrency by market capitalization, has faced significant challenges recently, falling below the key $2 threshold amid a broader market correction. This decline has dampened investor sentiment since October. However, these news reports highlight five critical catalysts identified by market analyst Sam Daodu that could potentially drive XRP to new all-time highs of $5 by 2026.
1. The BlackRock-Backed ETF Potential
At the forefront of Daodu’s analysis is the potential for a BlackRock-backed XRP exchange-traded fund (ETF). Since mid-November 2025, spot XRP ETFs have attracted over $1 billion in cumulative inflows. If BlackRock proceeds with its ETF plans, estimates suggest inflows could exceed $2 billion. This capital influx would reshape market demand and solidify XRP’s status as the only cryptocurrency linked to a fully regulated token in the United States, significantly bolstering its case for reaching $5.
2. Japan’s Evolving Role in the XRP Narrative
Another critical factor involves Japan’s growing significance within the XRP ecosystem. Ripple, in partnership with SBI Holdings, plans to launch RLUSD—Ripple’s USD-backed stablecoin—by the first quarter of 2026, pending regulatory approval. The integration of RLUSD on the XRP Ledger (XRPL) could create substantial demand for XRP as a bridge currency, supporting the case for a price increase to $5, even if this impact unfolds gradually.
3. Tokenization of Assets
The third catalyst Daodu identifies is the tokenization of assets. Ripple’s expanded partnership with Archax aims to introduce “hundreds of millions of dollars” in tokenized equity, debt, and funds onto the XRP Ledger by mid-2026. Should the XRP Ledger capture even a modest 5-10% share of the tokenized asset settlement market, the demand for XRP would rise significantly, further supporting its goal of reaching the $5 milestone.
4. Macroeconomic Policies and XRP’s Upside Potential
Macroeconomic policies also play a crucial role in influencing XRP’s price trajectory. Anticipated rate cuts by the Federal Reserve (Fed) could lower returns on cash and short-term bonds, typically driving investors toward riskier assets that offer better growth and liquidity opportunities. Such shifts in investor behavior could provide additional support for XRP’s ascent.
5. Changing Supply Dynamics in the Market
Recent on-chain data reveals a noteworthy shift in supply dynamics. The amount of XRP held on exchanges has decreased significantly, with 1.35 billion XRP removed in less than two months. Exchange balances plummeted from approximately 3.95 billion tokens to about 2.6 billion, with over a billion leaving in just three weeks. This trend suggests a behavior change among holders, as many opt for long-term storage solutions.
Daodu concludes that reaching the $5 mark will not rely on a single event or headline. Instead, it will require a convergence of multiple factors, including strong ETF inflows, institutional adoption, and favorable macroeconomic conditions. As of now, XRP trades at $1.88, reflecting a nearly 50% decline from its all-time high levels reached in July.
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