XRP had a rough few years since the SEC filed a lawsuit against Ripple in December 2020. However, the case was settled in 2025, leading to a substantial rise in investor sentiment. XRP climbed to a new all-time high of $3.65 in July of last year. While XRP’s price has dipped substantially since its July 2025 peak, let’s discuss why institutional adoption could be the key for the asset to hit the $8 mark.
How Institutional Adoption Can Push XRP’s Price To $8
The settlement of the SEC vs. Ripple lawsuit brought much needed regulatory clarity for the project. Regulatory clarity is key to boost investor sentiment. Moreover, it also opens the door for financial institutions to pour money into the project. The clear rules around XRP status as a non-security for retail buyers and a security for institutions has made it easier for interested parties to pick the asset for their portfolio.
XRP saw the launch of several spot ETFs in 2025. ETFs have become a key price driver for several crypto assets. Bitcoin (BTC) and Ethereum (ETH) hit new all-time highs in 2025 thanks to increased ETF inflows. XRP could also see a surge in institutional purchases once the bear market is over. ETFs could play a key role in this regard. Goldman Sachs recently revealed that it holds $2.36 billion in crypto holdings. XRP ETFs made up $153 million of the total. Goldman Sachs’ XRP position is a testament to the institutions bullish outlook on the asset.
Also Read: Is It Early To Buy XRP or Are You Already Late?
Institutional adoption is a signal many retail players look for before taking any positions. Bitcoin (BTC) saw a surge in its price after the SEC approved 11 spot ETFs in 2024. While the current bear market is keeping XRP at bay, we could see a surge in institutional adoption once the crypto market is back on its feet.
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