Why XRP Still Deserves Attention: 4 Ripple Strengths

Why XRP still matters despite weak 2026 prices

Although XRP underperformed in 2026, asset manager 21Shares argues that Ripple's fundamentals have strengthened compared with prior years. The firm points to four pillars supporting XRP's long-term case: clearer regulation, improved institutional access, expanding XRPL use cases, and a predictable supply schedule.

Institutional inflows and XRPL network growth

One major catalyst was the conclusion of Ripple’s multi-year legal dispute with the U.S. Securities and Exchange Commission in August 2025, which removed a key regulatory overhang for institutional investors. Since then, spot XRP ETFs have recorded more than $1.7 billion in net inflows, signaling ongoing institutional demand despite periodic sell pressure in the market.

On-chain activity and tokenization metrics

The XRPL has also seen rapid adoption: over the past 12 months it processed nearly $500 billion in on-chain value. Stablecoin RLUSD grew from $72 million to $1.6 billion in market value, while tokenized assets on XRPL reached roughly $4 billion. Those figures indicate growing utility for payments, stablecoins, and tokenization on the ledger.

Predictable supply: capped and non-inflationary

XRP’s supply is capped at 100 billion tokens and does not have routine inflationary issuance, a characteristic that 21Shares highlights as attractive to longer-term investors comparing digital assets with fixed or predictable supplies.

The missing link: real, sustained demand for XRP

21Shares cautions that higher XRPL activity does not automatically translate into durable demand for XRP. Institutional users can leverage the ledger without holding large XRP positions for extended periods, creating a gap between network adoption and persistent token demand.

Short-term test: breaking $1.40 resistance

The immediate market test is whether network adoption converts into buying pressure strong enough to push XRP past the $1.40 resistance level. Retail investors should watch price action and trading volume closely around that threshold to assess whether momentum is returning.

In summary, Ripple’s regulatory clarity, ETF inflows, XRPL growth, and capped supply form a stronger fundamental backdrop — but converting utility into sustained token demand remains the primary challenge for XRP’s next leg up.