Strong ETF inflows, bullish sentiment, and shrinking supply push XRP ahead of the market
XRP has started the year with remarkable momentum, quickly earning the label of the “hottest crypto trade of 2026.” After a sharp rally in early January, the token has outperformed both Bitcoin and Ether, supported by a mix of institutional demand, on-chain strength, and renewed confidence in Ripple’s ecosystem.
Since the beginning of the year, XRP has surged around 25%, far exceeding gains seen in Bitcoin and Ether over the same period. This early outperformance has drawn significant attention from traders looking for returns outside the most crowded crypto trades.
Strong XRP ETF Inflows
One of the biggest drivers is sustained inflows into spot XRP exchange-traded funds. Nearly $100 million has flowed into XRP ETFs since the start of the year, pushing total inflows above $1.15 billion, with no recorded outflow days. This suggests consistent investor conviction rather than short-term speculation.
Both crowd and smart-money sentiment remain bullish, while exchange reserves have dropped to two-year lows, signaling reduced selling pressure. At the same time, network transactions have jumped by over 50%, reflecting growing usage.
Ripple continues to expand globally, with new partnerships in Japan and progress on regulatory and institutional fronts. These developments reinforce confidence that XRP’s recent rally is supported by fundamentals, not hype.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.