XRP Forecast: Analyst Insights on 2026 Targets

What to Know:

• Analysts suggest the traditional four-year crypto cycle may be ending, replaced by longer-term trends driven by new market forces.
• Institutional adoption, regulatory progress, and the growth of stablecoins are reshaping the crypto landscape.
• An Inversion CEO believes XRP has a better chance than Ethereum to revisit its all-time high, citing Ripple’s strategic advantages.

After a challenging 2025, the crypto market is showing signs of renewed optimism as we enter 2026. Despite an early peak, last year ended with a significant downturn, impacting assets like XRP. However, industry leaders and analysts are now suggesting that the market may be poised for a recovery, driven by fundamental shifts in market dynamics and adoption patterns. Comments from Bitwise CIO Matt Hougan and Inversion CEO Santiago Roel Santos offer intriguing perspectives on the evolving landscape and the potential for specific assets like XRP.

Crypto Underperformed in 2025

The crypto market experienced a notable correction in 2025, despite reaching a high of $4.27 trillion in early October. By year-end, the market had retraced to $2.93 trillion, reflecting a $1.34 trillion decline from its peak and an overall annual loss of $250 billion, or 7.85%. XRP mirrored this trend, declining 11.51% over the year. This underperformance has prompted a reassessment of market cycles and future growth drivers.

Bitwise CIO Says 4-Year Cycle Over, Expects Bullish 2026

Bitwise CIO Matt Hougan suggests that the traditional four-year crypto cycle may be losing relevance. Hougan argues that the market is transitioning to a longer, potentially 10-year upward trend, influenced by factors beyond the cyclical nature of past markets. The launch of spot Bitcoin ETFs in January 2024 and subsequent regulatory advancements in January 2025 have introduced new dynamics. The growing influence of stablecoins and tokenization are also cited as critical factors overshadowing the traditional four-year cycle.

Hougan anticipates a steady rise in the crypto market throughout 2026, characterized by lower volatility and more normalized price movements. This perspective acknowledges the lingering influence of the four-year cycle on investor sentiment but asserts that it no longer dictates overall market direction. The expectation is for more gradual and sustained growth, rather than the sharp rallies seen in previous cycles.

Institutional Adoption and Market Structure

Hougan also highlights the critical role of institutional adoption in shaping market behavior. Large financial firms such as Morgan Stanley, Merrill Lynch, Wells Fargo, and UBS have only recently approved Bitcoin investment products, despite the launch of ETFs nearly a year prior. This slow integration reflects the deliberate pace at which institutions allocate capital, often requiring multiple meetings and quarterly reviews before committing funds. The combination of slow institutional inflows and rapid retail trading contributes to the uneven market movements observed.

Inversion CEO More Bullish on XRP Than Ethereum

Inversion CEO Santiago Roel Santos has expressed a notably bullish outlook on XRP compared to Ethereum. Santos believes XRP has a higher probability of returning to its all-time high, even if the broader market faces headwinds. This contrasts with his bearish view on Ethereum, where he sees limited potential for ETH to reach its previous peak. Santos criticizes Ethereum’s product development approach, suggesting that centralized decision-making may be more effective than fully decentralized strategies.

Santos also questions Ethereum’s valuation, arguing that its $350 billion market cap lacks substantial support. In contrast, he points to XRP’s lower valuation and draws parallels between Ripple’s scale and that of Visa. He suggests that Ripple has ample opportunity to leverage XRP to acquire businesses, expand its distribution network, and enhance its product offerings. This strategic flexibility positions XRP favorably for future growth, according to Santos.

The evolving crypto landscape presents a complex interplay of cyclical patterns, institutional adoption, and asset-specific dynamics. While challenges remain, the potential for sustained growth and strategic asset deployment offers intriguing opportunities for discerning investors. The contrasting perspectives of industry leaders underscore the importance of rigorous analysis and a nuanced understanding of market forces.

Related: Bitcoin Accumulation Resumes: Crypto Recap

Source: Original article