CNBC crowns XRP ETF as 2026’s hottest crypto trade after powerful January price rally

In a sign of shifting sentiment across digital assets, CNBC has labeled the XRP ETF the standout trade of 2026 after a strong start to the year.

XRP surges 24% to lead large-cap crypto performance in January 2026

Data from BeInCrypto Markets shows that since the beginning of January 2026, XRP has gained 24%, sharply outperforming Bitcoin (BTC), which is up 5.5%, and Ethereum (ETH), which has risen 9.7%. Moreover, this advance places XRP among the strongest large-cap performers, second only to Dogecoin (DOGE), which has jumped 28.6% and currently leads the top 20 by year-to-date returns.

The rally has also enabled XRP to overtake BNB, securing the position of fourth-largest digital asset by XRP market capitalization. However, the move has not been entirely smooth. After nearly a week of sustained gains across digital assets, the broader market experienced a modest pullback driven by profit-taking. As part of this crypto market correction, XRP also retraced.

At the time of writing, XRP was trading at $2.28, down 2.47% over the past 24 hours. That said, despite the short-term decline, its year-to-date performance keeps it firmly ahead of most large-cap peers.

CNBC hails XRP as the “new cryptocurrency darling” of 2026

XRP’s recent performance has drawn mainstream attention. CNBC highlighted that XRP has quietly emerged as the breakout trade of the crypto rally in 2026, even branding it the “new cryptocurrency darling.”

“The hottest crypto trade of the year is not Bitcoin, it is not Ether, it is XRP,” Brian Sullivan, host of CNBC’s Power Lunch, said during a recent segment.

Moreover, CNBC host Mackenzie Sigalos outlined how XRP attracted investors during a phase when broader interest in major cryptocurrencies remained muted. She noted that this contrarian interest ultimately paid off. During weak market conditions in the fourth quarter of 2025, many market participants increased their exposure through exchange-traded products tracking XRP.

This behavior notably differed from trends seen in spot Bitcoin and Ether funds, where investors typically chase price momentum. With XRP, Sigalos argued, investors did the opposite. “But it was the fact that it is a way to have a higher percentage jump. So people were buying the dip with XRP in Q4, thinking this is a less crowded trade than Bitcoin or Ether. And then that proved out to be true. Just in the first six trading days of January,” she explained.

ETF inflows, supply absorption, and cross-border payments narrative

BeInCrypto recently reported that XRP-linked funds have attracted uninterrupted inflows since launch, signaling robust institutional investor interest. Data from SoSoValue shows that cumulative xrp etf inflows into spot products have reached $1.25 billion. On January 6 alone, these vehicles pulled in $19.12 million in net new capital.

Analyst Chad Steingraber projected that continued buying could see as much as 4.8 billion XRP absorbed by funds by 2026, assuming daily purchases of 20 million tokens. “What happens when the XRP ETFs are taking 20 Million XRP per day?… 20 Million XRP Per Day x5 – 100 Million XRP Per Trading Week. 100 Million XRP Per Week x4 – 400 Million XRP Per Trading Month. 400 Million XRP Per Month x12 – 4.8Billion XRP in 2026,” he said.

If such sustained accumulation materializes, it could meaningfully tighten available supply on the open market. That said, any resulting xrp price rally would still depend on broader demand dynamics and macro conditions in digital assets.

Besides ETF flows, Sigalos pointed out that XRP’s long-standing role in XRP cross border payments has reinforced its investment case. Moreover, the combination of a payments-focused use case and aggressive capital inflows has strengthened the narrative around XRP as a high-beta alternative to Bitcoin and Ether.

Debate over thin liquidity, orderbook dynamics, and rally sustainability

Not all analysts are convinced that XRP’s latest surge reflects organic demand. Some warn that thin liquidity concerns may be amplifying price moves. Specifically, observers noted that very light ask-side (sell-side) liquidity on major exchanges has created favorable conditions for rapid upside.

“This was not driven by aggressive market buying. Most exchanges are net negative on taker volume, which shows the difference between real demand and unique orderbook dynamics,” one analyst commented. Moreover, they cautioned: “I’ll be keeping close eyes as this type of growth is not ideal unless bids start chasing and supporting.”

Such orderbook structure means relatively modest buying can push prices higher, but it can also leave XRP vulnerable to sharp reversals if sell pressure returns. That said, continued demand from ETFs and retail traders could help deepen liquidity over time.

While XRP’s strong start to 2026 and surging fund inflows have cemented its status as one of the year’s standout trades, opinions remain divided on how long the momentum can last. Ultimately, the sustainability of the current uptrend will hinge on whether ongoing capital flows, market depth, and broader risk appetite can support further gains from here.