Why Xrp Is Outperforming Bitcoin And Ether At The Start Of 2026 - Guide

XRP is having an explosive start to the year, driven by strong ETF inflows, bullish sentiment, and declining exchange reserves.

Ripple’s payment token, XRP, has just been labelled by CNBC as the “new cryptocurrency darling” after gaining 25% in the first week of the new year.

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

XRP (XRP) has gained 25% since Jan. 1, outperforming Bitcoin (BTC), which is up 6%, and Ether (ETH), which has risen 10% since New Year’s Day.

But there could be many more tailwinds driving the token’s price.

Exchange-traded fund momentum, social sentiment, on-chain fundamentals, and recent partnerships could explain why XRP is outperforming its peers at the moment.

Analysts caution that ETF inflows and social-media sentiment have historically proven volatile and do not guarantee sustained price appreciation. Previous XRP rallies driven by narrative momentum have often cooled once inflows slowed or broader market conditions shifted.

Onchain metrics such as declining exchange balances can also reverse quickly during periods of heightened volatility, while regulatory and macroeconomic developments remain key external risks that could weigh on price action despite strong early-year performance.

WATCH: CNBC SAYS "THE HOTTEST CRYPTO TRADE OF THE YEAR IS NOT BITCOIN, IT IS NOT ETHER, IT IS $XRP." pic.twitter.com/moYcx3OtG0

CNBC host Mackenzie Sigalos said, “during the doldrums of Q4, a lot of people were piling into XRP ETFs, which is the exact opposite of what happens with spot Bitcoin and Ether ETFs, where people move in tandem with the price of the coin.”

Source: CoinTelegraph