Is XRP (Ripple) on the Way to $1 in 2026? Here's Why It Looks Increasingly Likely.

Cryptocurrency Industry Overview - The cryptocurrency industry has experienced a significant downturn in 2026, with the total market value dropping to $2.3 trillion, a 47% decrease from the previous year's peak [1] - XRP, the fifth largest cryptocurrency, has seen a dramatic decline of 65% from its all-time high [1] XRP and Ripple Payments - XRP was created by Ripple to facilitate a unique payment system that allows banks to conduct instant global transactions with minimal fees [2] - Currently, XRP is trading at $1.26 per token, with predictions suggesting it may drop to $1 or lower in 2026 [2] Real-World Utility Challenges - The global banking system remains fragmented, with some banks relying on networks like SWIFT, leading to costly and time-consuming transactions [5] - Ripple Payments aims to enable direct cross-border transactions between banks, resulting in near-instant settlements and significantly reduced costs [6] Structural Issues Affecting XRP - XRP's value is theoretically expected to rise as more banks adopt Ripple Payments; however, structural issues hinder this potential [7] - Banks typically convert received XRP into their domestic currency almost immediately, limiting the long-term holding of XRP and creating no real value for the token [7] - The Ripple Payments network allows banks to use fiat currencies, meaning there is not always a direct correlation between Ripple Payments activity and XRP's value [8] - The introduction of Ripple USD, a stablecoin launched in late 2024, offers a more stable payment option, contrasting with XRP's volatility and potential for losses [9]