XRP Forecasted to Approach $3 in 2026 Amid Development and Institutional Expansion
January 11, 2026
Finance

XRP Forecasted to Approach $3 in 2026 Amid Development and Institutional Expansion

Market outlook hinges on smart contract adoption and Ripple's institutional advancements

Summary

XRP is projected to reach or exceed $3 in 2026, building on its previous peak and ongoing developments. Key factors influencing this forecast include the maturation of smart contract activity on the XRP Ledger's Ethereum Virtual Machine (EVM) sidechain and Ripple's progress in institutional banking initiatives. Despite these prospects, investors should prepare for potential volatility and a gradual ascent rather than a rapid rally.

Key Points

XRP previously reached an all-time high of $3.65 in 2025, setting a precedent for future price targets.
The adoption and active use of the XRP Ledger's EVM sidechain by developers and institutions will be a central factor supporting price growth.
Ripple's strategic shift toward institutional banking services, including applications for regulatory charters and acquisitions of crypto-financial firms, aims to broaden XRP adoption.

Projections for XRP indicate that it could attain a price of $3 or higher at some point during 2026. This prediction comes even as the current trading price hovers around $2.15, suggesting that the path to this target may involve periods of limited price movement and gradual progression rather than swift gains.

XRP achieved an all-time high of $3.65 in 2025, establishing a precedent for its ability to reach price levels above $3. Consequently, a return to or surpassing of the $3 mark is within the realm of possibility. The forecasted price goal may not be viewed as particularly aggressive considering this historical context.

Among the primary factors anticipated to influence XRP's price increase is the development and adoption of smart contract activity on the XRP Ledger’s Ethereum Virtual Machine (EVM) sidechain. This sidechain, launched in mid-2025, operates as a distinct blockchain connected to the main XRP Ledger, allowing for the execution of Ethereum-style smart contracts. The compatibility facilitates the reuse of existing developer tools and code, potentially lowering the barrier for developers to build decentralized applications (dApps) on the network.

As of early January 2026, the total value locked (TVL) on the XRP EVM sidechain has remained below $50,000, indicating minimal engagement by capital holders. A notable expansion in this figure, influenced by Ripple’s efforts to promote the sidechain’s adoption among financial institutions and other users, could correlate with upward pressure on XRP’s price. Increased utility and real-world application of the sidechain might foster a sustainable growth trajectory for the asset.

Another critical driver is Ripple’s evolving positioning within the institutional banking sector. The company responsible for XRP is aligning itself more closely with traditional banking frameworks, which includes pursuing a U.S. national bank charter and seeking a Federal Reserve master account to support custody infrastructures linked to its stablecoin initiatives.

This strategic pivot aims to establish Ripple as a preferred platform for banks and currency exchange entities to conduct blockchain-based transactions. Success in this domain could contribute to incremental price increases; however, due to the sizeable market capitalization of XRP, individual announcements are unlikely to trigger dramatic price surges. Instead, price growth is expected to proceed in measured stages, interspersed with minor positive reactions to news of pilot programs or collaborations with financial institutions.

In addition to organic growth, Ripple has been expanding its capabilities by acquiring companies that provide foundational crypto-financial services. Notably, last year Ripple acquired the prime brokerage firm Hidden Road and the stablecoin payment platform Rail, among others. These acquisitions enhance Ripple’s operational suite, making the use of XRP in financial services more attractive to clients.

Further acquisitions or successful integration of acquired entities could exert modest upward influence on XRP’s price through increased utility and adoption. Furthermore, increases in the user base driven by these strategic moves may provide sustained demand for XRP tokens.

A supplementary demand factor is the activity from digital asset treasury (DAT) companies, which have demonstrated a tendency to accumulate XRP as part of their treasury reserves. Likely to continue this purchasing behavior into 2026, these acquisitions alone may not propel XRP above $3, but when combined with other positive factors, they contribute to the feasibility of reaching this price target.

Nevertheless, technological improvements and expanded service offerings do not always translate into immediate or continuous price appreciation in the cryptocurrency sector. At times, increased network usage can coincide with a stagnant or even declining token price, a phenomenon observed with major cryptocurrencies, including XRP. This suggests the possibility of extended periods during 2026 when XRP’s price may remain range-bound or experience only minor fluctuations despite underlying progress.

In summary, the likelihood of XRP reaching or exceeding $3 in 2026 depends heavily on the successful cultivation of its EVM sidechain developer ecosystem and the further expansion of Ripple’s institutional banking relationships and infrastructure. While the ultimate price goal is attainable, investors should anticipate a potentially gradual and occasionally uneven price journey rather than a rapid escalation.

Risks
  • Despite technological and infrastructural advancements, XRP's price may stagnate or decline temporarily, as network usage does not always correlate with token price.
  • The maturation of the EVM sidechain developer ecosystem is uncertain, currently reflecting minimal total value locked, which may limit near-term price appreciation.
  • Institutional strategy progress may be slow and subject to regulatory or market adoption challenges, potentially delaying the anticipated price impact.
Disclosure
The analysis and forecasts presented are based solely on information available as of early 2026 and do not constitute financial advice. Investors should conduct their own research and consider their risk tolerance before making investment decisions.
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