The growth of XRP is indeed supported by a whole set of factors — from fundamental to situational in the market. I have picked out the main reasons that are currently working in conjunction.

Institutional demand. One of the strongest drivers is the inflow of funds into spot ETFs on XRP. After the launch of these instruments at the end of 2025, total inflows reached approximately $1.37 billion. When large funds and management companies start actively buying an asset, this creates a stable "floor" under the price and reduces the risk of a strong pullback during upward movements.

Supply deficit. XRP balances on cryptocurrency exchanges have fallen to multi-year lows (by some estimates, to levels not seen since 2018). When there are fewer coins in free circulation, while demand remains or grows, price movements become more pronounced.

Ecosystem development. Ripple is actively developing solutions based on the XRP Ledger: launching the RLUSD stablecoin (which increases liquidity and expands the token's use cases), working on tokenization of real-world assets (RWA). The more banks and financial institutions adopt these technologies for cross-border payments, the higher the potential demand for XRP itself as a technical component of the infrastructure. New projects — from DeFi to gaming platforms — are also being integrated into the ecosystem.

Regulatory clarity. One of the key narratives of recent months is the expected vote on the CLARITY Act in the US. If passed, it would officially classify XRP as a digital commodity. This would remove significant legal uncertainty, increase institutional investor confidence, and open the door to even greater capital inflows.