Bitwise CIO, Inversion CEO See XRP Positioned for Recovery in 2026
Analysts see a better 2026 for XRP after a weak 2025. Crypto market cap fell from a $4.27T peak in Oct 2025 to $2.93T year-end, a $1.34T drop; the market lost $250B on the year (−7.85%). XRP underperformed, falling 11.51% in 2025. Brad Kimes summarizes views from Bitwise CIO Matt Hougan and Inversion CEO Santiago Roel Santos. Hougan argues the old four-year crypto cycle is fading and the market is entering a longer, multi-year uptrend driven by structural changes: spot Bitcoin ETFs (Jan 2024), regulatory progress (Jan 2025), rising stablecoin use, and tokenization. He expects 2026 gains to be steadier with lower volatility as institutional adoption continues slowly. Santos is relatively bullish on XRP compared with Ethereum, saying XRP’s lower valuation and Ripple’s ability to expand distribution and acquire businesses give it more upside potential; he expressed skepticism about ETH reaching prior highs due to product and valuation concerns. The article cautions this is opinion and not financial advice.
Bullish
The coverage highlights structural positives that support a bullish tilt for XRP and the broader market in 2026. Key bullish drivers noted: institutional adoption (slow but continuing), regulatory clarity achieved in early 2025, the impact of spot BTC ETFs, and growth in stablecoins and tokenization — factors that historically sustain longer-term appreciation and reduce flash volatility. Santos’s specific bullish view on XRP versus Ethereum adds asset-specific upside: XRP’s lower market cap and Ripple’s commercial-focused strategy (partnerships, distribution, potential acquisitions) suggest more room for appreciation relative to larger, more-decentralized networks. Short-term impact: expect modest positive sentiment and potential reflows into XRP as investors price in institutional commitments and lower perceived cyclical risk; volatility may remain but could trend down. Long-term impact: if institutional allocations and tokenization adoption continue, XRP could benefit from network utility and corporate use cases, supporting a sustained uptrend. Risks: macro shocks, regulatory reversals, or negative outcomes in Ripple-related litigation or business execution could negate this bullish case. Similar historical parallels include post-ETF adoption phases where institutional flows gradually supported higher lows and smoother uptrends rather than explosive immediate rallies.