Standard Chartered has slashed its 2026 year-end XRP price forecast by 65%, citing persistent market downturns and institutional outflows from crypto ETFs.

The British investment bank, which previously held an ambitious $8 (approx. KES 1,040) price target, has revised its call to $2.80 (approx. KES 364), marking the largest downward adjustment among its digital asset forecasts. The revision reflects the broader volatility that has plagued the cryptocurrency market throughout the first quarter of 2026.

Geoffrey Kendrick, the bank's head of digital asset research, noted that while the near-term outlook remains challenging, the bank maintains a constructive long-term view of XRP's role in the global financial ecosystem, particularly in areas like stablecoins and tokenized real-world assets.

Market Volatility and Institutional Flows

The XRP ETF space, which saw record-breaking interest upon launch, has experienced a cooling-off period. Assets under management (AUM) have declined from a peak of $1.6 billion (approx. KES 208bn) in January to approximately $1 billion (approx. KES 130bn) by mid-February, signaling a shift in sentiment among institutional investors.

• Revised Target: From $8 (KES 1,040) to $2.80 (KES 364) by the end of 2026.
• Market Context: Broader crypto market downturn; assets under management in XRP ETFs fell 40% from peak.
• Future Outlook: Standard Chartered expects XRP to keep pace with Ethereum in the medium term.

Strategic Implications

This cut is part of a broader reassessment by the bank, which also trimmed its Bitcoin, Ethereum, and Solana targets. For investors in East Africa, where cryptocurrency adoption is steadily growing as an alternative financial instrument, the bank's pivot highlights the risks of betting on short-term price momentum during volatile macroeconomic climates.

Despite the near-term gloom, XRP enthusiasts argue that upcoming developments—such as a pending bank charter and expanded DeFi utility—could provide the necessary catalysts for recovery. Whether these initiatives can bridge the gap remains a pivotal question for the market through 2026.

"We expect further declines near-term and we lower our forecasts across the asset class," Kendrick remarked in a note to investors.