Core Insights - XRP enters 2026 with significant infrastructure developments but struggles with price stagnation despite regulatory clarity and institutional partnerships [1] - The launch of smart contracts on AlphaNet in November 2025 enables native DeFi applications on the XRP Ledger (XRPL), potentially increasing token demand [2][5] - The challenge remains whether these infrastructure advancements can translate into actual demand for XRP tokens [3] Group 1: Smart Contracts and DeFi Potential - The introduction of smart contracts on AlphaNet allows developers to create DeFi applications directly on XRPL, addressing previous limitations [6][7] - XRPL's smart contracts can facilitate lending pools and liquidity protocols, which may lead to increased demand for XRP as tokens are locked in these applications [5][8] - This development positions XRPL to compete for on-chain volume beyond just payment transactions, potentially attracting more developers and liquidity [8] Group 2: Disconnect Between Network Growth and Token Demand - Despite the rapid growth of the XRPL network, there is a significant disconnect between this growth and the demand for XRP tokens [10] - Ripple has established a robust payment system utilized by institutions for large transactions, yet XRP is primarily used for temporary settlement rather than being held long-term [10] - This lack of sustained holding contributes to the ongoing challenges in achieving price growth for XRP [10]