XRP exchange-traded funds (ETFs) are poised to significantly influence the future price of the cryptocurrency, with projections suggesting that assets could reach $5 billion by mid-2026. In less than two months, XRP ETFs have already attracted over $1 billion in inflows, locking up approximately 746 million XRP, which represents just over 1% of the token’s circulating supply. Remarkably, there has been only one day of net outflows, indicating strong market interest.
Shifting Dynamics in XRP Supply
The increasing demand for XRP ETFs is altering the landscape of XRP’s supply. If the current trend continues, experts estimate that nearly 2.6 billion XRP could be removed from active circulation by mid-2026, accounting for close to 4% of the total supply. This development is notable as XRP is becoming increasingly difficult to find on exchanges. Data indicates that exchange balances plummeted by 58% in 2025. When tokens are withdrawn from exchanges, it typically signals long-term holding rather than immediate selling, which alleviates sell pressure and can support price increases over time.
Despite the robust interest in ETFs, XRP has experienced price challenges throughout the latter half of 2025. The cryptocurrency’s value fell below $2 and struggled to regain that threshold, making it a formidable barrier. However, recent market activity shows signs of recovery. Analysts report that XRP has rebounded above the macro support level near $1.88, a positive indicator for the start of the year if it can maintain that position.
Market Outlook and Predictions
The market is closely observing whether XRP can sustain its position around the $1.88 support level. Should it hold, the next resistance zone could be around $2.30. Currently, the price structure does not exhibit strong bearish signals. While short-term fluctuations may occur, the overall market setup remains favorable as long as XRP stays above critical support levels.
If ETF assets reach $5 billion, the implications could be substantial. ETFs typically retain tokens for extended periods, thereby tightening the available supply in the open market. As demand escalates while supply diminishes, prices frequently trend upward. Some analysts predict that XRP could rise to $8 by 2026 if ETF inflows continue robustly and institutional adoption broadens. Notably, Standard Chartered forecasts a potential increase of 330% for XRP, citing enhanced access for institutional investors and improvements in market structure.
Nevertheless, actual price outcomes will depend on measurable data rather than mere speculation. The dynamics of ETF flows, supply trends, and overall market conditions will be pivotal in determining XRP’s future trajectory.