Market expert Sam Daodu has released a new report arguing that several large-cap cryptocurrencies, including XRP, are currently undervalued relative to their underlying infrastructure building and network activity levels. While the broader market remains dominated by Bitcoin (BTC), many major altcoins are trading significantly below their 2025 highs following a prolonged pullback that began late last year. For XRP specifically, the asset has spent much of 2026 consolidated within a narrow trading range between $1.30 and $1.50.
The wider digital asset market has seen the “extreme fear” veil lifted as of May 2026. The Crypto Fear & Greed Index recently hit a three-month high of 47, marking a notable shift from the low of 12 recorded just last month. This change in sentiment arrives as institutional support and regulatory deadlines begin to play a more integral role in price action. XRP speculative activity is currently being tested as buyers attempt to push through established resistance levels.
A primary driver for the current market outlook is the movement of the Digital CLARITY Act through the U.S. Senate Banking Committee. On May 14, 2026, the committee voted 15-to-9 to advance the bill, which is led by Senator Tim Scott. The legislation stipulates that the U.S. government will recognize XRP as a digital commodity, a move intended to provide the institutional legal certainty required for broader market participation.
Institutional inflows and exchange-traded fund performance
Institutional interest in the sector is increasingly concentrated in spot XRP ETFs, which launched in November 2025. Cumulative inflows into these products reached $1.53 billion as of May 15, 2026. Major financial players are now disclosing significant positions; Goldman Sachs, for instance, reported a $153.8 million stake in XRP ETFs, while the Canary XRP ETF has accumulated over $319 million in assets.
Demand for these regulated products remains steady as May progresses. On May 19, 2026, the five U.S.-listed spot XRP funds saw a combined net inflow of $25.8 million in a single day, the highest since early January. Analysts at JPMorgan have projected that these funds could accumulate at least $8 billion in total inflows during their first year of operation, signaling a shift in how professional capital accesses the asset.
Infrastructure developments are further supporting this institutional trend. The CME Group is scheduled to launch 24/7 XRP futures trading on May 29, 2026. This follows an earlier price jump of 5.8% when the plan was first announced in February. Furthermore, CME plans to add XRP to the NASDAQ Crypto Index on June 8, a move expected to increase accessibility for a wider range of investors.
Network utility and stablecoin growth on the XRP Ledger
The utility of the XRP Ledger (XRPL) is being bolstered by the rapid growth of the Ripple USD (RLUSD) stablecoin. RLUSD has recently surpassed $1.4 billion in assets, an increase of 7.8% over the previous month. While the majority of the RLUSD supply is currently based on Ethereum, approximately $400 million is held on the XRP Ledger, where adjusted transaction volumes rose 62% to $3.2 billion recently.
This increase in on-chain activity coincides with higher transaction counts, which hit 3 million in March 2026 — triple the average seen in mid-2025. According to research, XRP wallet adoption trends continue to move higher as the ecosystem enters a broader $2.7 trillion market encompassing decentralized media and Web3 payments. Whales also showed conviction during recent market dips, accumulating 71 million tokens.
Market experts like XRP Queen and Sal Gilbertie are eyeing the potential of the ledger to handle trillions in global payments. Gilbertie, the CEO of Teucrium, has discussed models suggesting that a higher token price would be necessary for the system to remain efficient if it handles massive institutional flows. Additionally, Ripple has applied for a Federal Reserve master account, which, if approved, could further embed the technology into banking settlement rails.
Macroeconomic factors and year-end price projections
Broader economic conditions are expected to influence the market throughout the remainder of 2026. Federal Reserve interest rate cuts are considered likely if inflation continues to fall toward the 2% target. Meanwhile, the global M2 money supply has jumped to a record high. Research indicates this supply is expected to continue rising, driven by stimulus measures implemented in countries like China and Japan.
Analysts provide a wide range of price targets for XRP based on these catalysts. Standard Chartered has offered a bullish year-end forecast of $8.00, assuming the Digital CLARITY Act passes and ETF inflows reach $10 billion. More conservative base-case projections from Bitwise and Bitrue Research place the expected range between $2.50 and $4.94 for the 2026 period.
Technical analysts are also watching specific price levels for the next leg up. Analyst Ali suggests a rally toward the $1.70 to $1.80 range if the price can break above $1.45. Conversely, if current legislative and institutional catalysts fail to materialize, some models suggest a bearish case where the price could fluctuate between $0.75 and $1.50. The upcoming June 8 index inclusion remains a critical watchpoint for traders. Institutional legal certainty remains the core requirement for the bullish cases to manifest.