TL;DR
- CNBC called XRP the hottest crypto trade as it surged over 25% in January 2026 amid capital rotation.
- XRP ETF inflows since Jan. 1 neared $100M, taking totals to $1.15B with no outflow days, while Bitcoin and Ether saw Q4 outflows.
- Reserves on exchanges hit two-year lows as XRPL activity rose over 50%; partnerships, OCC approval, and an August 2025 lawsuit resolution fed targets up to $10.
XRP is grabbing early 2026 attention after CNBC labeled it the “hottest crypto trade,” pointing to explosive gains and a growing institutional bid that sets it apart from Bitcoin and Ether. In the first week of January 2026, XRP surged more than 25% as capital rotated into what was described as a less crowded trade. The segment framed a deeper structural shift rather than a quick speculative pop, arguing the rally reflects repositioning that began in late 2025. The question now is whether those catalysts can last all year.
Capital Rotation Puts XRP in Focus
CNBC pointed first to ETFs as the surprise engine of the move. During the quieter market in Q4 2025, investors accumulated spot XRP ETFs while Bitcoin and Ether products saw net outflows. Since Jan. 1, 2026, XRP ETFs pulled in nearly $100 million, lifting aggregate inflows to $1.15 billion, and the segment noted there has been not a single day of outflows. That steady bid matters because it suggests positioning was built before price accelerated, giving the breakout a sturdier base than a pure momentum chase. XRP looks like a rotation target, not an afterthought.
The second and third drivers were behavioral and on-chain. CNBC said social and investor mood has turned decisively bullish, with “smart money” sentiment near peak levels. Exchange data was cited as reinforcing that view: XRP reserves on major venues, including Binance, fell to two-year lows, implying holders are moving coins into longer-term storage. On the network side, activity accelerated too, with transactions and usage on the XRP Ledger up more than 50% over the past two weeks. Together, declining reserves plus rising activity reinforced the rally’s narrative. That combination reads like demand, not froth today.
CNBC’s fourth driver was institutional traction and legal clarity. Ripple announced partnerships in Japan with Mizuho Bank, SMBC Nikko, and Securitize Japan to drive XRP Ledger adoption. In the U.S., Ripple received approval in December 2025 from the Office of the Comptroller of the Currency to charter the Ripple Trust Bank. CNBC also said XRP shed its legal overhang after the SEC lawsuit was resolved in August 2025. On valuation, Standard Chartered projected $8 by end-2026 with $4 to $8 billion in ETF inflows, while targets from $3.66 to $10 were discussed if momentum persists.
