Why XRP Is the Hottest Crypto Trade of 2026

CNBC has just labeled XRP (XRP) as the hottest crypto trade of the year, as strong price performance pushes the token back into the spotlight.

The altcoin has started 2026 on a strong note, posting the second-largest gains among the top 20 cryptocurrencies by market capitalization.

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XRP Outperforms Large-Cap Peers in Early 2026

BeInCrypto Markets data showed that since the beginning of January 2026, XRP’s value has appreciated by 24%, significantly outperforming Bitcoin’s (BTC) 5.5% gain and Ethereum’s (ETH) 9.7% return.

XRP’s advance places it among the strongest performers in the large-cap segment, second only to Dogecoin (DOGE). The meme coin is up 28.6% and currently leads the top 20 by year-to-date returns.

The rally has also allowed XRP to overtake BNB, establishing itself as the fourth-largest digital asset by market capitalization. Still, the move has not been linear.

The broader crypto market experienced a modest correction today, driven by profit-taking after nearly a week of sustained gains. As a result, XRP also saw a pullback. At the time of writing, XRP was trading at $2.28. This represented a decline of 2.47% over the past 24 hours.

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CNBC Highlights XRP as the “New Cryptocurrency Darling” of 2026

Despite the short-term correction, XRP’s broader rally has not gone unnoticed. CNBC noted that XRP has quietly become the breakout trade of crypto’s 2026 rally, even referring to it as the “new cryptocurrency darling.”

CNBC host Mackenzie Sigalos explained that XRP drew investors during a period when broader interest in most major cryptocurrencies was subdued, and that ultimately paid off. During the weak market conditions in the fourth quarter, many investors added exposure to XRP ETFs.

This stood out because with spot Bitcoin and Ether ETFs, investors usually follow price momentum. With XRP, the behavior was the opposite.

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BeInCrypto recently reported that XRP ETFs have recorded uninterrupted inflows since their launch. Data from SoSoValue shows that cumulative inflows into XRP spot ETFs have reached $1.25 billion. The products pulled in $19.12 million in net inflows on January 6.

Analyst Chad Steingraber projected that continued ETF inflows could result in as much as 4.8 billion XRP being absorbed by ETFs by 2026, based on assumed daily purchases of 20 million XRP.

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If such sustained accumulation were to materialize, it could significantly reduce available market supply. This could potentially exert upward pressure on XRP’s price, depending on broader demand and market conditions. Besides ETFs, Sigalos suggested that XRP’s long-standing role in cross-border payments has strengthened its narrative.

However, analyst Dom argued that XRP’s price surge is not driven by strong buying demand, but by other factors. Specifically, very thin ask liquidity (sell-side liquidity) has created conditions for prices to rise.

While XRP’s strong start to 2026 and sustained ETF inflows have reinforced its breakout narrative, analysts remain divided on the sustainability of the rally. Whether the current uptrend can continue remains to be seen.