Ripple's payment token, XRP, was just dubbed the “recent cryptocurrency darling” by CNBC after gaining 25% in the primary week of the brand new 12 months.
“The hottest crypto trade of the 12 months isn’t Bitcoin, it’s not Ether, it’s XRP,” Brian Sullivan, host of CNBC’s Power Lunch, said Tuesday.
XRP price is rising in the brand new 12 months
XRP (XRP) has gained 25% since January 1, outperforming Bitcoin (BTC), which is up 6%, and Ether (ETH), which is up 10% for the reason that New Year.
But there may very well be loads more tailwinds driving the token's price.
Exchange-traded fund dynamics, social sentiment, on-chain fundamentals, and up to date partnerships could explain why XRP is currently performing higher than its peers.
WATCH: CNBC SAYS: “THE HOTTEST CRYPTO TRADE OF THE YEAR IS NOT BITCOIN, IT’S NOT ETHER, IT’S $XRP.” pic.twitter.com/moYcx3OtG0
– The Wolf of All Streets (@scottmelker) January 6, 2026
The XRP ETF’s momentum stays strong
CNBC anchor Mackenzie Sigalos said: “During the Q4 lull, numerous people invested in XRP ETFs, which is the precise opposite of what is occurring with spot Bitcoin and Ether ETFs, where people move in parallel with the worth of the coin.”
This is a approach to get a “higher percentage jump” by investors buying XRP’s Q4 decline pondering “it is a less crowded trade” than BTC or ETH, “and that proved true in the primary six trading days of January.”
According to Coinglass, the 4 spot XRP ETFs have seen nearly $100 million in inflows for the reason that start of the 12 months, with Monday seeing the best inflow in greater than five weeks.
Total inflows now stand at $1.15 billion and there isn’t any day of outflow yet.
No expiration days for XRP ETFs. Source: Coinglass
Bullish social sentiment and on-chain activity
Social sentiment for XRP can be bullish. Market Prophit, which uses AI to research crypto social media accounts, reports that each crowd sentiment and “smart money sentiment” are bullish.
According to CryptoQuant, XRP foreign exchange reserves on Binance are also at their lowest level in two years. High foreign exchange holdings often mean that investors are preparing to sell the asset.
According to XRPscan, there has also been a surge in network activity and transactions, increasing by greater than 50% within the last two weeks.
Ripple is taking further steps in Japan
Ripple Labs also reportedly announced partnerships with major Japanese financial institutions, including Mizuho Bank, SMBC Nikko, and Securitize Japan, to advertise the adoption of XRP Ledger in Japan.
In December, Ripple received conditional approval from the U.S. Office of the Comptroller of the Currency to form Ripple National Trust Bank.
Ripple President Monica Long told Bloomberg on Tuesday that the corporate's November fundraising and $40 billion valuation were “very positive and favorable for Ripple,” but there have been no immediate plans for an IPO.
