XRP 24-Hour Increase of 12.86% Behind the Rise: ETF Frenzied Capital Inflows, Institutional Bottom-Fishing, and Ecosystem Expansion Triple Drive

XRP continues its strong start in 2026, rising 12.86% in 24 hours to $2.40, with a single-day market cap increase of $16.577 billion to $145.483 billion. This surge is not an isolated phenomenon but the result of multiple driving factors working together. From the sustained net inflows into US spot ETFs, to supply tightening as exchange reserves hit a seven-year low, and the accelerated expansion of cross-chain ecosystems, XRP is experiencing profound market structural changes, with institutional funds beginning to become the dominant force.

Spot ETFs Become the Strongest Catalyst

Since the launch of the US spot XRP ETF in November, it has accumulated net inflows of over $1.2 billion, with assets under management surpassing $1.25 billion. Behind this data are actual actions by institutional investors. Franklin Templeton’s XRPZ fund holdings have broken 100 million XRP for the first time, reaching 101.5 million XRP, with a market value of $1.927 billion, more than doubling in a month.

Even more noteworthy is that, while Bitcoin ETFs experienced outflows of $2.9 billion and Ethereum ETFs saw outflows of $59.5 million, XRP ETFs maintained contrary net inflows, with a single-day inflow reaching $70.2 million last week. This indicates that institutional investors’ demand for XRP allocation remains unaffected by overall market volatility, and they are actively deploying strategies during pullbacks.

Dual Enhancement in Market Heat and Ranking

XRP’s popularity ranking has risen to second globally, only behind Bitcoin, surpassing Ethereum. This change in ranking often reflects actual market attention and liquidity conditions. Meanwhile, XRP’s market cap ranking has also climbed to fourth, overtaking BNB, signaling an important indicator in this bull cycle.

The 24-hour trading volume reached $7.153 billion, providing strong liquidity support for price increases. This rise in popularity is driven not only by retail FOMO but also by institutional funds actively reallocating their portfolios.

Supply Tightening and Demand Resonance

Centralized exchanges hold about 1.6 billion XRP, a new low since 2018, down approximately 57% from the peak at the end of 2025. This suggests investors are increasingly transferring tokens into self-custody wallets, significantly reducing short-term circulating supply.

Although Ripple plans to unlock 1 billion XRP in January 2026, historical data shows that about two-thirds or even up to four-fifths of unlocked XRP are quickly re-escrowed, with limited actual market inflow. This means that even with new supply, the incremental inflow into the market remains relatively controlled. The tightening supply and ETF demand create a resonance that provides medium- to long-term support for prices.

Technical Bullish Signals

On the 3-hour chart, XRP has completed a golden cross against Bitcoin, with the 50-period moving average crossing above the 200-period moving average for the first time since 2026. This bullish signal is also present on shorter timeframes. The XRP/BTC pair has broken through the key resistance at 0.00002257.

It has risen for five consecutive trading days and has broken above the 50-day moving average for the first time since October last year. Analysts point out that the next major resistance is at $2.56, with key support between $2.05 and $2.10. Maintaining this range could help sustain the overall upward trend.

Ecosystem Expansion Lays Foundation for Long-Term Growth

Wrapped XRP is now available on multiple mainstream networks including Solana, Ethereum, Optimism, Ink, and Unichain, launched in partnership with Hex Trust and LayerZero, supported 1:1 by native XRP. During initial launch, over $100 million in liquidity was locked.

Ripple’s stablecoin RLUSD has initiated a multi-chain pilot, launching on Ethereum Layer 2 via Wormhole protocol. The tokenized real-world assets on the XRP Ledger have surpassed $568 million, with a 2200% increase year-over-year, of which RLUSD accounts for over 50%, approximately $293 million. These developments mark a deep evolution of the XRP ecosystem from single-chain to multi-chain strategies, creating new use cases for real-world asset tokenization and yield protocols.

Policy Environment and Institutional Optimism

Standard Chartered’s Global Head of Digital Asset Research expressed optimism about XRP, expecting its price to reach $8 by 2026, representing a potential increase of 230% from current levels. The US President’s public speech emphasizing modernization of the financial system through faster payment infrastructure and advanced crypto technologies is seen by the market as a positive signal for blockchain and crypto payment solutions.

The Japanese government plans to reduce the capital gains tax on cryptocurrency investments from the current maximum of 55% to 20%, and intends to introduce more ETF products linked to specific cryptocurrencies. These policy changes create a more favorable environment for XRP’s practical application.

Summary

XRP’s recent surge is not merely price fluctuation but the result of multiple factors working together. On the demand side, continuous net inflows into US spot ETFs and strategic institutional allocations provide strong support. On the supply side, declining exchange reserves indicate tightening circulating supply. Technical signals like the golden cross have appeared. Ecosystem expansion and accelerated RWA applications lay a foundation for long-term growth. Additionally, improved policy environments and positive institutional outlooks add further confidence.

These factors form a relatively complete upward logic chain. In the short term, key support levels are at $2.05–$2.10, with resistance at $2.56. Breaking through $2.56 could lead to further advances toward $3.40 or higher. However, investors should remain cautious, as recent bullish technical signals have also failed at times, and close attention to support levels’ validity is advised.