• Analyst Mike Fay says XRP’s worth is pushed by ETFs, not community utilization.
• Regardless of stablecoin progress, XRP Ledger exercise and costs declined sharply in 2025.
• The XRP ETF attracted billions of {dollars} in inflows, serving to to keep up the token’s valuation.

XRP’s worth is primarily supported by exchange-traded funds and investor inflows reasonably than elevated community utilization. This ranking is predicated on latest evaluation by In search of Alpha contributor Mike Fay.

ETF demand offsets slowdown in community exercise

Mike Fay’s evaluation factors out that ETF demand is a significant component supporting XRP’s valuation. Notably, the Spot XRP ETF was launched within the US in November 2025 and has since attracted billions of {dollars} in property.

The Canary Capital fund is the primary XRP ETF launched on November thirteenth. It at the moment ranks highest in property beneath administration (AUM) at $392.75 million. The Bitwise XRP ETF, which was launched per week later, ranks second with roughly $309.6 million in property beneath administration. Franklin XRP ranks third with $287.85 million in property beneath administration.

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XRP attracted almost $3.7 billion in web funding inflows in 2025, rating third amongst digital property behind Bitcoin and Ethereum. Regardless of some small outflows firstly of the 12 months, whole funding publicity entered the primary week of 2026 at just below $3.6 billion.

After web outflows of $40.8 million yesterday, January seventh, the XRP ETF has cumulative web inflows of $1.2 billion as of this writing. This was the primary damaging influx in 2026. Due to this fact, the full web property of the XRP ETF is $1.53 billion.

On-chain metrics present a decline 12 months after 12 months

Whereas ETF inflows remained sturdy, XRP Ledger exercise declined throughout the identical interval. Within the fourth quarter of 2025, each day lively addresses fell almost 27% year-over-year, in keeping with information cited by Fay. The quarterly numbers confirmed about 21,700 lively addresses, down from about 30,000 within the year-ago interval.

Buying and selling volumes didn’t decline as sharply, falling by roughly 12% year-on-year. Community prices have fallen much more considerably. Charges incurred within the fourth quarter decreased to roughly $129,000 from roughly $600,000 within the prior quarter. Complete annual charges amounted to roughly $2.3 million.

Fay emphasised that charges are an vital measure of financial exercise, noting that charges replicate precise demand for block house reasonably than speculative earnings.

Stablecoin progress stays restricted

The XRP Ledger recorded a excessive progress charge in stablecoin exercise in 2025. Stablecoin switch quantity reached almost $1 billion within the fourth quarter, a rise of almost 500% year-over-year. Throughout this era, the provision of stablecoins on the community additionally elevated.

Regardless of its progress, the XRP Ledger’s share of worldwide stablecoin switch quantity remained small. Complete stablecoin transfers throughout blockchains in the course of the quarter reached roughly $19.7 trillion, giving the XRP Ledger a market share of lower than 0.01%.

XRP analysis and ETF construction threat

Through the evaluation interval, XRP’s market capitalization remained at round $136 billion. Mr. Fay famous that valuation metrics resembling market worth versus realized worth stay above historic averages, indicating that costs are above holders’ realized price foundation.

He additionally warned of dangers related to ETF constructions. In contrast to spot crypto markets, ETFs solely commerce throughout market hours. This limits buyers’ potential to react to cost fluctuations throughout weekend and in a single day buying and selling.

Mr. Fay concluded that XRP’s worth efficiency is more and more depending on investor stream reasonably than community utilization. Whereas ETFs provide regulated entry and liquidity, on-chain information progress has thus far been restricted. Waiting for 2026, the important thing query stays whether or not community exercise can sustain with market expectations.

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