CNBC Calls XRP the Hottest Crypto Trade of 2026 Amid Strong January Rally

Core Insights - XRP has been identified as the hottest crypto trade of 2026, showcasing strong price performance and gaining significant attention in the market [1][5]. Performance Summary - Since the beginning of January 2026, XRP's value has increased by 24%, outperforming Bitcoin's 5.5% and Ethereum's 9.7% gains, making it one of the top performers among large-cap cryptocurrencies [2]. - XRP has surpassed BNB to become the fourth-largest digital asset by market capitalization, although its price movement has not been linear [3]. Market Dynamics - The broader crypto market experienced a correction due to profit-taking after a week of gains, leading to a 2.47% decline in XRP's price, which was trading at $2.28 at the time of reporting [3]. - Despite the short-term correction, XRP's overall rally has been recognized, with CNBC labeling it as the "new cryptocurrency darling" of 2026 [4][5]. Investor Behavior - XRP attracted investors during a period of subdued interest in major cryptocurrencies, with many adding exposure to XRP ETFs during weak market conditions in Q4 [6]. - Investors perceived XRP as a less crowded trade compared to Bitcoin or Ether, leading to increased buying activity during price dips [7]. ETF Inflows - XRP ETFs have seen continuous inflows since their launch, with cumulative inflows reaching $1.25 billion, including $19.12 million in net inflows on January 6 [8].