XRP Signals Growth as Next-Gen Infrastructure

What to Know:

• A market analyst argues XRP meets key criteria for next-generation financial infrastructure.
• The analysis highlights price stability, network reliability, transaction volume, and institutional support.
• Institutional interest in XRP and Ripple’s partnerships may drive future growth.

XRP is currently trading around $2, but some analysts believe this price doesn’t reflect its true potential. The argument is that XRP possesses the characteristics necessary to evolve into a core component of global financial infrastructure rather than just a speculative asset.

Four Pillars of Financial Infrastructure

DAG CEO Jake Claver recently outlined four critical factors that determine whether a crypto asset can support significant financial activity: price stability, network reliability, steady transaction volume, and strong institutional support. Claver suggests XRP already demonstrates strength in all these areas, positioning it for potential growth as next-generation financial infrastructure.

Price Stability and Liquidity

XRP has shown relative price stability, trading between $1.80 and $2.20, demonstrating resilience compared to more volatile assets. After a market-wide downturn in Q4 2025, XRP rebounded strongly in early 2026, gaining over 35% from its December low. Ripple’s controlled escrow releases help manage supply and mitigate abrupt market fluctuations, while substantial daily trading volumes provide the deep liquidity that large institutions demand before engaging with an asset.

Network Reliability and Scalability

The XRP Ledger (XRPL) provides transaction finality in just 3-5 seconds with minimal energy consumption, thanks to its consensus mechanism that doesn’t rely on mining. Over 150 independent validators maintain the ledger, ensuring near-constant uptime. Ongoing network upgrades include digital identity features, automated market makers (AMMs), and other DeFi infrastructure components. With a capacity of around 1,500 transactions per second (TPS), the XRPL is equipped to handle real-world, large-scale financial use cases.

Consistent Transaction Volumes

The XRPL consistently processes high transaction volumes. In Q3 2025, the network averaged 1.8 to 2 million transactions per day, with occasional spikes pushing totals even higher. These transactions support real-world applications, including remittances, business payments, and emerging DeFi and stablecoin activities. XRP also experiences consistently large market transaction volumes, typically ranging from $3 billion to $7 billion daily, with a yearly low of $1.4 billion.

Institutional Engagement and ETF Inflows

Ripple has established partnerships with over 300 banking and payment firms globally through RippleNet, with many utilizing XRP via On-Demand Liquidity (ODL) for cross-border settlements. Notable partners include Santander, SBI, and PNC, with adoption expanding across Asia, Europe, and the Middle East. Institutional momentum has grown since late 2025, with spot XRP ETFs attracting over $1.21 billion in inflows. Ripple also gained regulatory clarity after settling its dispute with the SEC, launched a stablecoin, completed significant acquisitions, and secured conditional approval for a bank charter.

Conclusion

XRP’s potential to evolve from a speculative asset into a foundational element of global finance hinges on several factors. Continued network development, sustained transaction volumes, and growing institutional adoption will be critical. While uncertainties remain, XRP’s demonstrated strengths in price stability, network reliability, and strategic partnerships suggest it is well-positioned to play a significant role in the future of financial infrastructure.

Related: XRP Scores UK Regulatory Approval

Source: Original article