Weak Institutional Demand and Stablecoin Competition Limit XRP Price Potential

XRP may drop to $1 by December 2026. The asset has declined 42% in 2026 despite the availability of spot XRP ETFs. These funds, approved by the SEC late last year, have seen daily net inflows trend downward. Assets under management in spot XRP ETFs sit at $1 billion, or 1.2% of XRP's $81 billion market cap. For comparison, spot Bitcoin ETF AUM represents 6.4% of Bitcoin's $1.4 trillion market value. Geoffrey Kendrick of Standard Chartered recently lowered his 2026 forecast for the cryptocurrency from $8 to $2.80. The asset serves as a bridge currency in Ripple Payments ODL to convert fiat currency for cross-border transactions. However, stablecoins provide a less volatile option for moving money. Ripple's own stablecoin, RLUSD, competes with established options like USDT and USDC.