Ripple’s payment token, XRP, has been thrust into the spotlight after CNBC described it as the “new cryptocurrency darling,” following a 25% gain in the first week of the year. Speaking on CNBC’s Power Lunch on Tuesday, host Brian Sullivan said, “The hottest crypto trade of the year is not Bitcoin, it is not Ether, it is XRP.”

Since Jan. 1, the XRP cryptocurrency has climbed about 25%, outpacing the 6% growth of Bitcoin roughly and the near-10% increase of Ether over the same period. Market observers point to a mix of exchange-traded fund activity, social sentiment, onchain indicators and recent corporate developments as factors behind the token’s relative strength.

At the same time, analysts note that ETF flows and online sentiment can shift quickly and do not necessarily translate into sustained price appreciation, while regulatory and macroeconomic variables remain important external considerations.

ETF flows and sentiment diverge from peers

According to CNBC’s Mackenzie Sigalos, XRP-focused ETFs attracted notable interest during the quieter market conditions of the fourth quarter, contrasting with the behavior seen in spot Bitcoin and Ether ETFs, where flows often track price movements. This positioning reflected a view that XRP represented a less crowded trade, a thesis that appeared to play out during the opening trading days of January.

Data cited by market trackers shows that the four spot XRP ETFs have drawn close to $100 million in inflows since the start of the year, lifting cumulative inflows to around $1.15 billion, with no recorded outflow days so far. Alongside this, social-media analytics platforms report bullish readings for both retail and so-called smart-money sentiment.

Onchain data also indicates that XRP balances held on major exchanges have fallen to multi-year lows, while transaction activity on the network has risen sharply in recent weeks.

Partnerships and regulatory signals add context

Beyond market data, Ripple has continued to expand its footprint in Asia. The company has reportedly entered partnerships with major Japanese financial institutions, including Mizuho Bank, SMBC Nikko and Securitize Japan, aimed at increasing adoption of the XRP Ledger in Japan. In the United States, Ripple received conditional approval in December from the Office of the Comptroller of the Currency to establish Ripple National Trust Bank.

Commenting on the company’s broader positioning, Ripple president Monica Long told Bloomberg that the firm’s November fundraising round and reported $40 billion valuation were “very positive and favorable for Ripple,” while adding that there were no immediate plans to pursue an initial public offering.

Sources:

https://www.bloomberg.com/news/videos/2026-01-06/ripple-touts-november-fundraise-no-plans-for-ipo-video

https://www.msn.com/en-us/money/economy/why-xrp-is-the-new-cryptocurrency-darling/vi-AA1THan2

https://cointelegraph.com/news/4-reasons-xrp-called-hottest-trade-this-year

https://x.com/MarketProphit/status/2008747930199724288

https://x.com/paulbarron/status/2008164076501790990

https://www.coinglass.com/xrp-etf