As the cryptocurrency market enters the new year, optimism around XRP is growing, particularly following Standard Chartered’s positive outlook for the altcoin. As NewsBTC reported two weeks ago, the bank projects a significant surge for the token, forecasting a potential new all-time high of $8.
Recently, market analyst Sam Daodu has identified four key catalysts that could drive XRP toward this major milestone, potentially in the first quarter of the year.
What Could Drive Prices Higher?
The first catalyst stems from the imminent passage of the CLARITY Act, the crypto market structure bill expected to be marked up on January 15. Daodu asserted that the clarity provided by this new bill could significantly enhance institutional participation in the XRP market.
In addition, Ripple, the firm behind the altcoin, recently received conditional approval from the Office of the Comptroller of the Currency (OCC) to launch Ripple National Trust Bank, which will be a federally supervised trust institution.
Moreover, seven spot XRP exchange-traded funds (ETFs) are now trading in the US, boasting a combined assets under management (AUM) exceeding $2 billion and locking up 777 million XRP tokens.
Another significant factor in XRP’s potential rise is the growth of the RLUSD stablecoin, which has achieved a market capitalization of $1.33 billion and ranks third among US-regulated stablecoins poised for compliance under the GENIUS Act.
As banks begin deploying RLUSD across various payment corridors, activity on the XRP Ledger is expected to surge. Network fees paid in XRP create a direct link between the growth of stablecoins and a gradual reduction in XRP supply, turning utility into ongoing demand.
Finally, the GENIUS Act, signed into law by President Trump in July 2025, established clear regulations for US stablecoins. This clarity extends to Europe, Asia, and emerging markets, allowing for smoother cross-border expansion.
Bullish XRP Scenario
Analyzing these factors, Daodu suggests a “bull case” scenario in which XRP could reach between $8 and $10. This depends heavily on sustained institutional demand and consistent inflows into exchange-traded funds.
He noted in the report that if ETF inflows maintain the $300 to $500 million monthly rate observed in late 2025, it could lead to an additional 750 million to 1.25 billion XRP being locked by mid-year.
Under these conditions, Daodu concluded that XRP has the potential to not only surpass the $8 threshold but to extend its gains into the $10 range as supply constraints exert greater influence on pricing.
At the time of writing, the fifth-largest cryptocurrency on the market was trading at $2.13, marking a 3.7% increase on Tuesday.
Featured image from DALL-E, chart from TradingView.com
