Ripple Unveils Hybrid DAO as ripple Funding Shift Sees XRP Consolidate Near $1.40

Ripple has outlined a move to a more distributed funding model for the XRP Ledger while ripple’s native token XRP consolidates near $1. 40 after a recent rally and pullback. The update lays out new builder programs, a hybrid DAO and a central funding hub intended to broaden who directs ecosystem support, and comes as market indicators give mixed signals about near-term price direction.

Ripple's Hybrid DAO Explained

The company confirmed that more than $550 million has been deployed into XRPL ecosystem initiatives since 2017 and said the ecosystem will shift toward a distributed funding structure in 2026. A centerpiece of that shift is XAO DAO, described as a hybrid decentralized autonomous organization that will enable community voting on grant allocations and proposals and introduce microgrant funding mechanisms. The stated aim is to move decision-making power toward a wider set of stakeholders and independent entities.

XRP Consolidates Near $1. 40; ripple Outlook

Market prices have oscillated in recent sessions. XRP climbed over 10% earlier and briefly traded above $1. 45 before failing to breach $1. 50; it then dipped about 5% to trade near $1. 39 as of press time. Other market reads showed XRP trading around $1. 41 with intraday losses in the low single digits. As of February 27, 2026 (ET), monthly performance had deepened, with a reported monthly loss figure presented in end-of-month summaries.

On-chain and market-flow indicators are mixed. Exchange reserves were noted to have risen by double-digit percentage points to roughly 2. 77 billion XRP, a balance valued at about $3. 98 billion, which can signal increased potential selling pressure when tokens move onto exchanges. At the same time, large-holder flows have shifted: net whale outflows fell from the tens of millions of XRP in December to a small net outflow recently, suggesting major holders are not currently accelerating sales. U. S. spot ETF flows for XRP also showed small single-day net inflows on February 26, 2026 (ET), providing one modest liquidity input to market dynamics.

Short-term price direction is likely to remain tied to liquidity, macro conditions and regulatory developments rather than funding announcements alone. The update on ecosystem funding is a structural development whose near-term price impact is unclear.

Funding Hub, Builders and the Long Run

The roadmap includes a dedicated XRPL funding hub intended to centralize access to grants, accelerators and support programs, plus expanded accelerator programs, regional startup competitions and a FinTech Builder Program aimed at institutional-grade applications such as stablecoin payments and regulated financial services. Independent organizations and regional hubs cited in the update — including incubator programs and regional initiatives focused on APAC growth and university cohorts — are expected to play larger roles in onboarding and scaling builders.

Venture firms are positioned to provide capital and mentorship to projects building on XRPL. The stated logic is that as more startups, DeFi applications, tokenization platforms and payment solutions are launched and successfully used, transaction volume and on-chain activity would rise, increasing XRP’s usage as a utility rather than only as a speculative asset. Whether that shift materializes depends on measurable increases in usage metrics and real-world application adoption.

• Key takeaways: distributed funding a hybrid DAO and funding hub; XRP trading around $1. 39–$1. 41 after a failed $1. 50 run; on-chain usage metrics will determine long-term impact.

Forward look: the ecosystem change establishes new capital pathways for builders, but the material effect on XRP’s valuation will hinge on observable indicators such as transaction growth, sustained developer activity and continued shifts in exchange balances and large-holder flows. If those indicators move higher, the structural changes could support greater utility for the ledger; if they do not, price effects may remain limited.