XRP: The Case for Long-Term Accumulation Below $2

In the ever-shifting landscape of digital assets, XRP has emerged as a compelling case study in undervaluation and long-term potential. As of December 29, 2025, XRP trades at $1.86, a price point that, when analyzed through the lens of regulatory clarity, institutional adoption, and macroeconomic tailwinds, presents a compelling opportunity for strategic accumulation. This article argues that XRP's current valuation below $2 represents a rare inflection point for patient investors willing to bet on its foundational role in global finance.

Regulatory Clarity: A Foundation for Growth

The Ripple vs. SEC lawsuit, finalized in October 2024, marked a watershed moment for XRP. While the court imposed a $125 million fine for selling XRP to institutional clients, it unequivocally ruled that XRP is not a security. This decision has since catalyzed a wave of institutional interest, with nine asset managers filing spot XRP ETF applications. Regulatory clarity, though not absolute-given the SEC's ongoing appeal-has created a framework where XRP can thrive as a utility token rather than a speculative asset. For long-term investors, this represents a critical de-risking event.

Market Adoption: From Niche to Mainstream

XRP's real-world utility is no longer theoretical. Ripple's On-Demand Liquidity (ODL) solution processed over $15 billion in cross-border transactions in 2024, with 40% of RippleNet partners actively using XRP for these services. The Asia-Pacific region alone accounts for 56% of global ODL volume, underscoring XRP's role in emerging markets where traditional banking infrastructure lags. Furthermore, Ripple's partnerships with 10 central banks signal a strategic pivot toward central bank digital currencies (CBDCs), positioning XRP as a bridge between legacy systems and decentralized finance.

Institutional adoption is accelerating. Ripple's acquisition of Hidden Road to form Ripple Prime has created a robust infrastructure for institutional-grade custody and trading. Analysts estimate $5 billion to $7 billion in XRP ETF inflows by 2026, a figure that could drive demand and liquidity even if the SEC's appeal introduces short-term volatility.

Performance vs. Peers: XRP's Asymmetric Upside

XRP's 2025 performance has been nothing short of extraordinary. From November 2024 to November 2025, XRP surged 340%, far outpacing Ethereum's 0.38% gain during the same period. This momentum has propelled XRP back into the third-largest cryptocurrency by market cap, briefly reigniting debates about its potential to surpass Ethereum. According to analysis, XRP's price could overtake Ethereum in valuation, assuming Ethereum's price remains stagnant. This creates an asymmetric risk-reward profile for investors: a relatively modest price increase could unlock exponential gains.

At current prices, XRP trades at a $132 billion market cap, compared to Ethereum's $356 billion. Analysts suggest that a price target of $8 could see XRP overtake Ethereum in valuation, assuming Ethereum's price remains stagnant. This creates an asymmetric risk-reward profile for investors: a relatively modest price increase could unlock exponential gains.

Risks and Realities

No investment thesis is without caveats. The SEC's appeal of the 2024 ruling introduces regulatory uncertainty, and Ripple's foray into stablecoins (e.g., RLUSD) could dilute XRP's role in its own ecosystem. Additionally, XRP's price is highly sensitive to macroeconomic trends, such as interest rate cycles and global payment demand. However, these risks are mitigated by XRP's growing institutional adoption and its role in a post-SEC-clearance ecosystem.

Conclusion: A Buy-and-Hold Play on Global Finance

For investors with a 5–10 year horizon, XRP's current valuation below $2 offers a unique opportunity. The token's regulatory clarity, institutional-grade infrastructure, and real-world utility in cross-border payments create a strong foundation for long-term appreciation. While short-term volatility is inevitable, the macroeconomic tailwinds-ranging from CBDC adoption to ETF inflows-suggest that XRP is undervalued relative to its potential.

In a world where digital assets are increasingly integrated into global finance, XRP stands out as a bridge between tradition and innovation. For those willing to accumulate below $2, the rewards could be substantial.