Ripple’s payment token, XRP, was just dubbed by CNBC as the “new cryptocurrency darling” after gaining 25% in the first week of the new year.
“The hottest cryptocurrency trade of the year isn’t Bitcoin, it’s not Ether, it’s XRP,” CNBC Power Lunch host Brian Sullivan said Tuesday.
XRP Price Rises After New Year
XRP (XRP) has gained 25% since January 1, outperforming Bitcoin (BTC), up 6%, and Ether (ETH), which is up 10% since New Year’s Day.
But there could be many more tailwinds influencing the price of the token.
Exchange-traded fund dynamics, social sentiment, on-chain fundamentals, and recent partnerships could explain why XRP is currently outperforming its peers.
WATCH: CNBC SAYS “THE HOTTEST CRYPTO TRADE OF THE YEAR ISN’T BITCOIN, IT’S NOT ETHER, IT’S $XRP.” pic.twitter.com/moYcx3OtG0
– The wolf of all streets (@scottmelker) January 6, 2026
XRP ETF Momentum Remains Strong
CNBC host Mackenzie Sigalos said: “During the fourth quarter slump, a lot of people flocked to XRP ETFs, which is the exact opposite of what’s happening with Bitcoin and Ether spot ETFs, where people move in tandem with the price of the coin.
It’s a way to get a “higher percentage jump” with investors buying XRP’s dip in Q4, thinking “this is a less crowded trade” than BTC or ETH,” and that proved true over the first six trading days of January. »
Related: The XRP Army Got Everything But the $5 Price: Will 2026 Deliver?
The four spot XRP ETFs have seen nearly $100 million in inflows since the start of the year, with the highest inflow in more than five weeks on Monday, according to Coinglass.
Total admissions now total $1.15 billion, and there is no release day yet.
No release days for XRP ETFs. Source: coin mechanism
Bullish social sentiment and on-chain activity
Social sentiment towards XRP is also optimistic. Market Prophit, which uses AI to analyze crypto social media accounts, reports that crowd sentiment and “smart money sentiment” are bullish.
XRP exchange reserves on Binance are also at their lowest levels in two years, according to CryptoQuant. High FX balances usually mean investors are preparing to sell the asset.
There has also been an increase in network activity and transactions, which have increased by more than 50% in the last fortnight, according to XRPscan.
Ripple makes more moves in Japan
Ripple Labs has also reportedly announced partnerships with major Japanese financial institutions, including Mizuho Bank, SMBC Nikko, and Securitize Japan, to boost 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 charter Ripple National Trust Bank.
Ripple Chairman Monica Long told Bloomberg on Tuesday that the company’s November fundraising and $40 billion valuation was “very positive and favorable for Ripple” but that there were no immediate plans for an IPO.
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