The cryptocurrency market ended 2025 with sharp losses, yet as we step into 2026, there seems to be a light at the end of the tunnel, especially for XRP. The asset closed the year down nearly 12%, mirroring broader market trends. However, early sentiments indicate a renewed interest in XRP, with industry experts advocating for its potential recovery amidst structural shifts that could influence price dynamics.
XRP Shows Recovery Potential Despite 2025 Losses
After concluding 2025 with a notable decline, XRP is now the focus of a budding discussion about recovery. Analysts are urging a reevaluation of previous price expectations, as XRP’s current standing is being interpreted more as a strength than a weakness. Notably, Santiago Roel Santos, CEO of Inversion, has expressed optimism in XRP’s trajectory, stating that it possesses a credible path to retest its all-time high.
In a recent appearance on the Empire podcast, Santos pointed out that XRP’s current lower valuation offers Ripple, the blockchain company behind XRP, a unique opportunity for strategic initiatives, including potential acquisitions and ecosystem expansions. He argued that, unlike Ethereum, which faces valuation challenges, Ripple’s flexible approach can be a significant advantage as the market evolves.
Brad Kimes, founder of Digital Perspectives, echoed these sentiments, highlighting the shifting narrative surrounding XRP. Kimes noted that as institutional interest builds, the asset is likely to receive increased media attention and support, further enhancing its recovery potential.
Market Cycle Thinking Faces New Criticism
In an intriguing shift, Bitwise CIO Matt Hougan has contested traditional notions around the four-year crypto cycle, suggesting it no longer adequately describes current market behavior. He emphasized that new structural drivers such as institutional demand and tokenization are shaping crypto trends. According to Hougan, the volatility we’ve seen may soon give way to more stable price action, influenced by the anticipated rollout of spot Bitcoin ETFs and increased stablecoin adoption.
While past cycle logic still plays a role, he pointed out that institutional movements appear gradual, with major firms like Morgan Stanley and Merrill Lynch facing internal delays that have contributed to uneven market flows in 2025. However, Hougan anticipates a steadier influx of institutional capital in 2026, a shift he believes will benefit assets like XRP that are geared for practical deployment.
2026 Outlook Remains Focused on Structural Shifts
Ending 2025, the total crypto market capitalization stood around $2.93 trillion, notably down from its peak of $4.27 trillion in October. This represents an overall decline of roughly $250 billion year-over-year. Nevertheless, early signs in 2026 hint at a possible market rebound as analysts and institutions reassess their strategies.
Santos and Hougan share a common belief: the next growth phase of the crypto market hinges on regulation, adoption, and practical use cases. These elements are forecasted to exert a greater influence on price movements than speculative trading. For XRP, its lower price point and Ripple’s strategic maneuvers garner attention from analysts favoring utility-driven assets.
Looking forward, how Ripple leverages XRP within global financial systems and fosters partnerships could be pivotal for its road ahead. As optimism mounts, the market watches eagerly to see how XRP will redefine its standing in the evolving cryptoeconomy.
