XRP on the Rise: Can It Reach New Heights?

Launched in 2013, Ripple’s cryptocurrency XRP (CRYPTO:XRP) began trading at a low price and achieved a record high of $3.84 on January 4, 2018. This remains the pinnacle for the coin in the eight years since.

Many XRP investors are left wondering: Will XRP ever reach a new all-time high? The closest it came to its highest value was in July 2025, peaking at $3.65. However, it has since plummeted by 71%, now trading around $1.05.

XRP Has Not Reached a New High in Eight Years

After its record peak in January 2018, XRP experienced a crash along with the wider market, trading between $0.20 and $0.50 for the subsequent three years. The primary setback for XRP came with the SEC’s lawsuit against Ripple in December 2020, resulting in the removal of the coin from U.S. exchanges. Despite losing access to the U.S. market and enduring challenges from the SEC, XRP surged to $1.96 by April 2021.

Then, in July 2023, favorable news emerged when Judge Analisa Torres ruled that XRP traded on public exchanges does not qualify as a security. This verdict led to the relisting of the token on U.S. exchanges, restoring some of the legal status it had lost over two years prior.

News of Trump’s 2024 election victory and Gary Gensler’s announcement regarding his departure as SEC chair sparked an XRP rally, pushing its price past $2 again. XRP reached $3.40 in mid-January 2025, briefly becoming the third-largest cryptocurrency by market capitalization before climbing to $3.65 in July as the SEC case drew closer to conclusion.

However, it has been a downward trend since the $3.65 high, with the cryptocurrency continuing to decrease month by month throughout 2025 and into 2026, now sitting over 73% below last year’s peak. One challenge faced by XRP is its increased supply; circulation went from approximately 34 billion coins during its 2018 zenith to around 63 billion today, resulting in nearly double the former supply.

Additionally, Ripple releases up to one billion XRP from escrow each month and typically re-locks the majority of it. As a result, several hundred million coins enter the market every month, with this supply increase set to continue over the next nine years.

The Need for Genuine Demand for XRP to Surpass Previous Highs

For XRP to hit new highs, it will need substantial investment compared to its current state. At a price of $3.84 with 63 billion circulating coins, the market cap would need to reach $242 billion, compared to today’s worth of $65 billion. Some buying activity is indeed present through XRP ETFs, which currently hold around 978 million XRP that remains untouchable while investors keep their shares. Yet, this represents less than 2% of the overall supply after nine months of trading.

Ripple’s lending protocol aims to bolster that demand. Built upon two standards known as XLS-65 and XLS-66, it seeks to allow holders to deposit XRP into vaults that fund fixed-term loans, offering a set return, while assessing borrowers off-chain instead of relying on automated collateral rules. This would mark the first instance of XRP accruing value simply by being held, effectively locking coins for the duration of each loan.

However, this protocol has been pending since January, with validation votes initiated following the v3.1.0 release. As of early August, support remained around 20%, far short of the 80% needed for a two-week approval period for amendments on the XRPL. Halborn’s re-audit in June revealed no serious flaws, and RippleX is offering up to $200,000 for anyone who identifies one. What remains absent are validators willing to vote in favor.

In the meantime, Ripple’s other developments have also failed to boost XRP’s value. The company secured a full MiCA license from Luxembourg’s regulatory body in July, along with a European electronic money license, as well as a conditional U.S. national trust bank charter; nevertheless, XRP still experienced a 43% decline in value throughout 2026.

XRP Price Outlook: Will XRP Achieve a New All-Time High?

The future of XRP surpassing the $3.84 mark hinges on four factors; only one is somewhat assured. Historically, Bitcoin has achieved peaks 12 to 18 months post-halving, suggesting that the next cycle may culminate in 2029 following the 2028 halving. The remaining three factors include the lending protocol vote, the CLARITY Act, and the potential for XRP ETFs to generate substantial inflows—none of which have shifted favorably for XRP as yet.

Optimistic Prediction

XRP could potentially break its previous high in 2029, provided all three circumstances align. The approval of the lending protocol would encourage holders to lock away their XRP for potential earnings rather than selling during market rallies.

Furthermore, the passage of the CLARITY Act would solidify XRP’s commodity classification—a necessity for institutional investments—which could lead ETF inflows to soar beyond $4 billion annually. A market peak in 2029 could then uplift XRP alongside the broader cryptocurrency landscape.

Under this scenario, XRP could reach around $5, pushing its market cap to approximately $350 billion based on the expected 70 billion coins in circulation by that time. Such a valuation would exceed the previous maximum of $210 billion.

Conservative Prediction

Should catalysts develop but funds arrive gradually, XRP’s price might approach $3.84 without surpassing it. Validators could approve the lending protocol, yet the vaults would likely take years to reach significant deposits, particularly against a 63 billion coin supply.

The CLARITY Act could be passed in a subsequent session, but institutions would take time to establish positions afterwards. ETF inflows could improve based on such news, though possibly without hitting the $4 billion mark, as the funds have only accumulated $1.51 billion in nine months.

In this case, XRP’s price might range from $2.50 to $3.50 during the peak of 2029, mirroring its valuations from the summer of 2025 and fixing its market cap between $175 billion and $245 billion.

Pessimistic Prediction

If both the vote and the legislative process stagnate, XRP’s price might remain below $2. Validators could fail to reach the 80% approval threshold for the lending protocol, leaving XRP without a path to generate returns or a compelling reason for holders to retain their coins.

The CLARITY Act might also not be passed before Congress adjourns, leaving institutions in limbo regarding a commodity classification that any future SEC could potentially retract. XRP could continue to mirror Bitcoin’s fluctuations, hitting $2 in the next cycle before reverting to around $1 afterward.

Will XRP Achieve a New All-Time High?

While XRP is likely to breach the $3.84 threshold, it may not occur in this cycle. The run in July 2025 saw it almost reach its previous high due to news regarding the SEC case conclusion, occurring months before ETFs launched, without the lending protocol or the CLARITY Act in place. Unfortunately, XRP couldn’t sustain those levels, as there was no mechanism to keep the coins locked away once the news cycle ended.

Both the lending protocol and the CLARITY Act would alter this dynamic. Validator approval would provide holders with incentives to confine XRP into vaults instead of selling during subsequent surges, while Senate approval would grant institutions a stable legal framework to operate within, rather than one subject to future SEC reinterpretations. Until these factors are realized, XRP’s price will likely continue to follow Bitcoin’s path rather than react to Ripple’s initiatives.

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