Social media sentiment for XRP has surged to its highest level in five weeks, according to data from blockchain analytics firm Santiment. This positive shift in online discussion occurs against a backdrop of broader market weakness, with Bitcoin and Ethereum experiencing negative sentiment and capital outflows.
Institutional capital flows are a key driver of the renewed interest. A CoinShares report highlights XRP as the best-performing cryptocurrency in terms of fund flows this year, attracting nearly $150 million in new institutional investment. In stark contrast, Bitcoin and Ethereum have seen combined outflows of approximately $1.5 billion, signaling a potential rotation into assets perceived as having clearer utility.
A major catalyst for XRP's growing profile is its integration as collateral for loans on Coinbase. The exchange now allows customers to borrow up to $100,000 in USDC against their XRP holdings. A Coinbase spokesperson cited the ability to bring the token onto Base and the Morpho protocol, along with significant customer holdings, as reasons for the inclusion. This integration creates "stickier" demand, as holders can leverage their assets without selling, potentially reducing market selling pressure.
Technological developments on the XRP Ledger (XRPL) are also attracting institutional attention. Recent upgrades, including Permissioned Domains and a credential-gated decentralized exchange (DEX), provide compliance features that appeal to regulated entities seeking structured on-chain settlement solutions. Furthermore, Ripple's expansion into a broader digital asset ecosystem, backed by its upcoming RLUSD stablecoin, aims to enhance XRP's utility beyond its core function as a bridge currency for cross-border payments.
Despite the bullish indicators, caution remains. Standard Chartered recently revised its end-of-2026 price target for XRP downward from $8.00 to $2.80, citing the need for the asset class to digest recent market dips and warning of potential further declines. The analysis underscores that XRP's utility, while real, is specific—primarily serving as an efficient tool for liquidity management, cross-border payments via partners like SBI Remit and Tranglo, and as the essential fuel for the XRP Ledger network itself.
