It's been a strange year for XRP (XRP -2.61%) investors. Roughly one year ago, Ripple traded at just $0.50. In November, however, the crypto asset skyrocketed in value above the $2 mark. After many months of volatility, XRP's value remains just above the $2 level.
If you've been thinking about buying, there are two reasons to jump in before 2026 arrives.
1. Blockchain solutions are rapidly gaining credibility
Since launching in 2012, Ripple struggled to turn its lofty vision into reality. At its core, Ripple seeks to revolutionize the global banking industry by improving how cross-border transactions are processed.
Today, global banks rely on the SWIFT system. Settlements typically take several days, often with several intermediary banks getting involved, adding complexity and costs. Tracking funds throughout this process can be difficult, if not impossible, until the entire process has completed.
Ripple, meanwhile, uses a single ledger to track each transaction. Fees are a fraction of what the SWIFT system charges, and every transaction is traceable in real time. Settlement occurs in seconds, with automated reconciliation making sure everything went according to plan.
On paper, Ripple is a superior approach. The problem is getting big financial institutions to adopt a relatively new way of processing transactions. Even though Ripple has run many pilot projects to demonstrate its network's capabilities, adoption has been slow. Why? According to one report, "Many banks hesitate to use XRP due to regulatory uncertainty surrounding cryptocurrencies."
The crypto industry as a whole still has an up-and-down reputation. Plus, Ripple itself has been involved in SEC investigations.
Recently, however, the SEC settled its lawsuit with Ripple. Meanwhile, blockchain solutions continue to gain adoption throughout a wide variety of industries and use cases. More than half of all Fortune 100 companies now use blockchain technology in some way.
As adoption for adjacent technologies gains traction, don't be surprised to see Ripple's acceptance rise in tandem. In fact, there's a catalyst that could drive XRP's adoption faster than most expect.
Image source: Getty Images.
2. Global instability could actually benefit Ripple
There's no shortage of geopolitical events. Everything seems to be happening right now, from political uncertainty and regulation changes to exchange rate volatility and shifting trade policies. All of this could ultimately assist Ripple's adoption.
One of Ripple's main advantages is that it's relatively border agnostic. It's less controlled by large regulatory bodies that have more influence on the SWIFT network, and its transparency in tracking transactions, plus its speed in doing so, could be a huge plus in a world where global trust is lower than historical norms. Its decentralized ledger, meanwhile, is arguable more resilient than centralized solutions that can be more easily targeted by attacks.
Of course, global uncertainty could also hit global economic output, and thus affect the value of global cross-border transactions -- a direct blow to Ripple's business model, and thus the price of XRP as an asset. But for those thinking long term, geopolitical uncertainty could ultimately be a boon for Ripple. Its system arguably has more built-in trust than other frameworks that can change at any moment due to political or regulatory shifts.
While global events are difficult to predict, it's hard to imagine the world being more stable in 2026 than 2025, giving long-term investors more reason to buy this year, potentially before banks start looking for more resilient alternative payment rail solutions like Ripple.
