Canary Capital CEO Steven McClurg says he wouldn’t be surprised if XRP rises above $3.40 within the next few months as institutional lending and yield products grow on XRP Ledger (XRPL).
In a recent interview with Paul Barron, McClurg said XRP’s recent rise is being driven by increased activity on the XRPL, including institutional lending, credit and yield opportunities.
At press time, XRP was around $1.50, up 49% in a week. It had risen from about $0.9882 to as high as $1.70. That’s a gain of more than 70% from its weekly low.
XRP Ledger Will Be the Winner for Financial Rails
McClurg also made a broader prediction about the role XRP will play in institutional finance.
“I’ve said for a few years now that the winner for financial rails for a protocol is going to be XRP,” he said.
His argument centers on the different requirements of institutional and retail markets. While retail users may favor decentralized networks, McClurg believes financial institutions prefer infrastructure with greater centralization and compliance capabilities.
“Institutions need centralization,” he said, arguing that XRP Ledger’s characteristics make it attractive for institutional financial applications.
McClurg also pointed to the introduction of yield on the XRP Ledger as a catalyst for capital inflows. In his view, the ability to generate returns from assets within the ecosystem makes XRPL more attractive to institutions and holders.
Institutional Lending to Change the Market
Meanwhile, the Canary Capital executive highlighted recent developments bringing institutional-grade credit and lending to XRPL. Specifically, the discussion mentioned Cicada Credit, which brings lending expertise and borrowers to the ecosystem, and Clearpool, which provides infrastructure for institutional lending.
McClurg called the opportunity “massive” and said the lending market could grow far beyond the $1–2 billion range discussed in the interview. He also said the strong demand for these new products is a positive sign, even though the market is still young.
For XRP holders, more lending activity means more uses for XRP and more money flowing through the XRP Ledger.
Crypto Still in a Bear Market
Despite his bullish XRP price target, McClurg said he does not believe the crypto market has entered a confirmed bull market yet. “I still think that we’re in a bear market in crypto,” he said.
McClurg pointed to September’s historically weak seasonal performance and the upcoming U.S. midterm elections as sources of volatility. He suggested that a clearer crypto bull market may not emerge until after the midterms or even into January 2027.
That outlook means he views XRP’s recent move as short-lived. Still, McClurg acknowledged that XRP has established new pricing levels and said another 40% move in 2026 or early 2027 is possible.
In other words, a move above $3 may appear ambitious. But the Canary Capital CEO believes XRP’s price above $3.40 within the next year would not shock him.
South Korea Emerges as a Key XRP Market
McClurg also discussed XRP’s strong trading activity in South Korea, where the coin has become one of the market’s prominent crypto assets.
For context, recent data showed XRP trading volume on Upbit had surged 273% since March. McClurg attributed South Korea’s outsized crypto trading activity partly to the Korean won’s importance as a crypto trading pair.
He went further, saying he expects XRP to become a clear winner among blockchain protocols in South Korea.
While Ethereum remains dominant in markets such as Canada and the United States, McClurg argued that XRP has established a stronger position in South Korea.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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