XRP Could Plummet 99%? An In-Depth Analysis of Ripple's Market Status and Future in 2026

Ripple President Monica Long recently made a prediction that has garnered widespread market attention—she claims that 2026 will be a pivotal year for cryptocurrencies transitioning from experimentation to full-scale production.

She expects that by the end of this year, nearly 50% of the Fortune 500 companies will hold cryptocurrencies or have formal digital asset strategies in place, and stablecoins will no longer be just an alternative payment track but will serve as the infrastructure for global settlement.

01 Historical Drawdowns

XRP’s market performance is a textbook example of cryptocurrency volatility. The token once reached a historical high of $3.65 but also experienced lows close to $0.002686.

Even after a strong rebound in early 2026, XRP’s price remains over 40% below its all-time high, with a drawdown exceeding 99% from the peak to the trough. This figure vividly illustrates the extreme volatility characteristic of the crypto market.

Such dramatic price swings in XRP are not accidental; they reflect the early-stage features of the crypto market. As a cryptocurrency that once ranked among the top by market cap, XRP’s price movements are often closely tied to Ripple’s corporate developments, regulatory changes, and the overall crypto cycle.

02 Current Market Performance

According to the latest data from January 21, XRP’s price has fallen to around $1.90, down more than 3% in a single day, once again breaking below the psychological $2 mark. This performance starkly contrasts with Ripple President’s optimistic forecast.

This price trend highlights a disconnect between short-term market sentiment and long-term fundamental narratives. Even though Ripple positions 2026 as the decisive year for institutional adoption of cryptocurrencies, the market is still digesting various uncertainties.

Analysts believe that XRP’s strong performance in early 2026 is driven by multiple catalysts: including over $1.3 billion in net inflows into XRP ETFs, potential regulatory approval of the U.S. Digital Asset Market Clarity Act, and Ripple’s own business expansion.

03 Ripple’s Strategic Vision

Ripple President Monica Long defines 2026 as the “production era” for the crypto industry. She believes that trustworthy infrastructure and practical utility are driving banks, enterprises, and financial service providers beyond pilot phases into large-scale deployment.

At the core of this transformation is stablecoins. She predicts that stablecoins will shift from being an alternative payment track to becoming the infrastructure for global settlement. Major financial institutions like Visa and Stripe have already integrated stablecoins directly into their payment processes.

Business-to-business (B2B) payments are seen as the true growth engine, with companies leveraging digital dollars to unlock real-time liquidity and capital efficiency.

Data shows that B2B stablecoin payments reached an annualized rate of $76 billion last year, far exceeding the monthly less than $10 million at the beginning of 2023.

04 Key Predictions for 2026

Long has made four core predictions for 2026, outlining a roadmap for the integration of crypto assets into mainstream finance.

Institutional adoption will become the dominant trend. She expects about 50% of the Fortune 500 companies to hold digital assets or have formal digital asset strategies.

Stablecoin infrastructure will redefine global settlement. Stablecoins will no longer be just trading tools but will be “hard-connected” into the systems of major financial providers. She specifically notes that this shift will unlock trillions of dollars of idle operational capital on corporate balance sheets.

Capital markets and custodial services will migrate on-chain. She predicts that 5% to 10% of global settlement activity will shift on-chain, driven by asset tokenization and liquidity from stablecoin collateral.

The crypto custody sector will enter a period of consolidation, with crypto M&A activity reaching $8.6 billion in 2025, making custody the next major battleground.

05 Industry Consolidation and Transformation

The transformation of the crypto industry in 2026 is not limited to Ripple’s predictions. The entire sector is undergoing structural change.

Traditional exchanges are evolving into “all-in-one applications.” Platforms like Coinbase, Binance, and Kraken are no longer just trading venues; they are building ecosystems that include multiple financial services.

Particularly, Coinbase leverages Base as its operating system, Base App as its interface, USDC yield as its foundational support, and offers derivatives through Deribit.

Decentralized exchanges (DEXs) are disrupting traditional financial models. Perpetual contract DEXs may serve simultaneously as brokers, exchanges, custodians, banks, and clearinghouses.

Platforms like Hyperliquid are building native lending functions, integrating dispersed financial functions into a single smart contract.

06 Regulatory and Market Environment

Regulatory developments at the start of 2026 provide a new backdrop for the crypto market. U.S. Treasury Secretary Scott Bessent reiterated at the Davos World Economic Forum that the Trump administration is committed to establishing the “best possible” digital asset regulatory environment.

The U.S. has ceased selling confiscated Bitcoin, and future confiscated assets will be incorporated into digital asset reserves. Meanwhile, the Chairman of the U.S. Commodity Futures Trading Commission (CFTC) stated that Congress is “close to passing” the Digital Asset Market Clarity Act.

International regulation is also tightening. A Russian State Duma legislator has introduced a bill proposing hefty fines for illegal crypto mining—up to 100,000 to 150,000 rubles for individuals and up to 2 million rubles for companies.

Tom Lee warns investors that due to geopolitical tensions, cryptocurrencies and stock markets may experience a “painful decline” in 2026, but a rebound is expected by year’s end.

07 Investor Strategies

In light of XRP’s volatility and industry rapid changes, investors need to develop prudent strategies.

Focus on real-world applications and adoption indicators rather than just price fluctuations. Ripple’s collaborations with Mastercard and Gemini support stablecoin use in credit card transactions, bringing XRP closer to actual financial infrastructure.

Monitor regulatory progress, especially the passage of the U.S. Digital Asset Market Clarity Act. XRP is considered one of the most likely cryptocurrencies to benefit from clearer regulatory rules.

Diversify your portfolio, considering allocating funds across various crypto assets with different risk profiles and adoption pathways.

A long-term perspective is crucial, as institutional adoption and infrastructure development take time. Short-term price swings should not obscure long-term trends.

Future Outlook

At Gate Exchange, XRP’s latest price is $1.90, a correction from recent highs. Meanwhile, over $1.3 billion has flowed into XRP ETFs, with no recorded net outflows on any day.

This figure silently proclaims that despite intense price volatility, institutional investors are entering this space on an unprecedented scale, pushing cryptocurrencies from the fringes into the core operations of the global financial system.