XRP Named The ‘New Cryptocurrency Darling’ After Strong Start Of The Year

Overview

XRP has emerged as a significant player in the cryptocurrency market, receiving recognition from CNBC anchors as the “new cryptocurrency darling” after a strong start to the year. This performance has positioned XRP as a notable alternative to traditional market leaders like Bitcoin and Ether.

XRP’s Strong Performance

During the early trading days of the year, XRP demonstrated remarkable resilience and growth, with CNBC highlighting it as the breakout trade of 2026. The cryptocurrency has experienced a rally that saw it climb over 30% from its yearly opening, reaching a two-month high. This surge in value has allowed XRP to reclaim its position as the third-largest cryptocurrency by market capitalization, a status it lost during the previous year’s market volatility.

Brian Sullivan, a CNBC anchor, emphasized that XRP has outperformed other major cryptocurrencies, including Bitcoin and Ether, which recorded lower percentage gains during the same period. Sullivan affirmed that “the hottest crypto trade of the year is not Bitcoin, it is not Ether, it is XRP,” attributing its success to significant financial backing.

MacKenzie Sigalos, another CNBC anchor, commented on XRP’s performance, noting that it has been a “quiet outperformer” for months. She highlighted XRP’s role in cross-border payments as a key factor in its growing popularity, suggesting that its unique use case might differentiate it from other leading cryptocurrencies.

Factors Driving the Rally

Sigalos identified three primary reasons for XRP’s strong performance at the beginning of the year:

1. Regulatory Clarity: The resolution of Ripple’s legal battle with the SEC, which concluded on August 2nd, has eliminated uncertainty surrounding the cryptocurrency, providing a clearer path for investors.

2. Less Crowded Trade: XRP is perceived as a less crowded investment compared to Bitcoin and Ether. This perception has led to increased interest and investment in XRP during the initial trading days of January.

3. Consistent Fund Flows: Despite the downturn in Q4 of the previous year, XRP-based funds have seen sustained inflows, contrasting with the performance of major crypto ETFs. Investors have continued to add to XRP funds even when interest in Bitcoin and Ether ETFs declined.

Notably, XRP funds have performed well since their launch in Q4 2025, with significant cumulative net inflows recorded. Since their inception, these funds have attracted $1.25 billion in net inflows, with no days of negative net flows in nearly two months. In the first three trading days of the year alone, XRP funds garnered an inflow of $78.81 million.

From author

The surge in XRP’s popularity and performance highlights the evolving landscape of the cryptocurrency market. As regulatory clarity improves and investor interest shifts, XRP’s distinct use case in cross-border payments may provide it with a competitive edge. The ongoing success of XRP funds also suggests a growing confidence among investors in this cryptocurrency.

Impact on the crypto market

• XRP’s rise may signal a shift in investor sentiment, favoring altcoins over traditional leaders.
• The successful resolution of regulatory issues could encourage more institutional investment in XRP and similar cryptocurrencies.
• The performance of XRP funds indicates a potential trend towards more specialized investment products in the crypto space.
• XRP’s unique use case in cross-border payments may attract further interest from both retail and institutional investors, differentiating it from other cryptocurrencies.
• The ongoing influx of capital into XRP-based funds could lead to increased volatility and trading activity in the broader cryptocurrency market.