This paper introduces a new adaptive filtering algorithm for system identification called the discrete wavelet transform-based recursive inverse (dwt-ri) algorithm, addressing the low convergence rates of the traditional recursive inverse (ri) algorithm in high eigenvalue spread scenarios. By applying discrete wavelet transform to the input signal, the dwt-ri algorithm enhances convergence rates and mean-square-error performance compared to existing algorithms like ri, discrete cosine transform least mean square (dct-lms), and regular least squares (rls). Experimental results demonstrate significant improvements in both convergence speed and error metrics under various noise environments.