XRP Emerges as the Hottest Crypto Trade of Early 2026, Driven by Institutional ETF Inflows

Source: Coindoo Original Title: XRP Has Become the Hottest Crypto Trade of 2026, CNBC Says Original Link: The opening weeks of 2026 have reshuffled the crypto leaderboard, and XRP has emerged as one of the biggest surprises.

While much of the market continues to revolve around Bitcoin and Ethereum narratives, XRP has carved out its own lane – strong enough for mainstream media to single it out as the standout crypto trade of the year so far.

Key Takeaways

• XRP has been one of the strongest-performing large-cap cryptocurrencies at the start of 2026.
• XRP was highlighted as the standout trade, pointing to early positioning rather than late-stage momentum.
• Persistent ETF inflows suggest XRP’s rally has institutional backing, not just retail speculation.

What makes the move notable is not just the speed of the rally, but the timing. XRP’s strength began building before enthusiasm returned to the broader market, allowing it to accelerate as sentiment improved rather than chase it.

A Rare Case of Large-Cap Outperformance

In a market where large-cap assets often move in lockstep, XRP has clearly broken formation. Since the start of January, the token has climbed roughly 24%, leaving Bitcoin and Ethereum trailing well behind. Only Dogecoin has posted stronger year-to-date gains among the top-tier assets.

That relative strength has had tangible consequences. XRP briefly leapfrogged BNB by market capitalization, reasserting itself near the top of the crypto hierarchy. Even a short-term pullback toward the $2.28 level, following a wave of profit-taking across the market, has done little to dent its early-2026 dominance.

Capital Rotation Signals a Shift in Market Behavior

XRP’s rise is being framed as a change in investor behavior rather than a simple momentum chase. During the quieter, risk-off conditions of late 2025, capital quietly rotated into XRP-linked products while interest in other major assets stalled. That positioning proved critical once the calendar flipped and risk appetite returned.

The appeal was straightforward: XRP offered a cleaner upside profile. With Bitcoin and Ethereum already heavily owned, XRP stood out as a less congested trade capable of delivering sharper percentage gains once sentiment improved.

ETF Flows Tell the Same Story

ETF data reinforces that narrative. XRP spot ETFs have attracted consistent inflows since launch, pushing cumulative investments to around $1.25 billion. On January 6 alone, these products drew approximately $19 million in net inflows – a day when Bitcoin ETFs saw capital exit instead.

This pattern suggests XRP demand has been deliberate rather than reactive, with investors building exposure ahead of price confirmation. Whether that conviction can sustain the rally through inevitable volatility remains uncertain, but the early signals are hard to ignore.

For now, XRP’s combination of strong relative performance, steady ETF demand, and growing mainstream attention has positioned it as one of the defining crypto stories of early 2026 – not because it followed the market, but because it moved first.