CNBC Declares XRP the Hottest Crypto Trade of 2026 – Here's Why It's Outshining Bitcoin and Ethereum

In a surprising turn for the cryptocurrency market, CNBC has crowned XRP as the "hottest crypto trade" of the year just one week into 2026. During a January 6 segment on Power Lunch, host Brian Sullivan bluntly stated: "The hottest crypto trade of the year is not Bitcoin, it is not Ether, it is XRP." This declaration came amid a sharp rally that saw XRP surge over 25% in the first days of January, pushing its price to highs around $2.40 before a minor pullback to approximately $2.25.

The spotlight on XRP marks a dramatic shift from the Bitcoin and Ethereum dominance that defined much of the past cycle. While Bitcoin hovers near $92,000 with modest gains and Ethereum trades around $3,200 showing weaker momentum, XRP has quietly outperformed both, briefly reclaiming the third spot in market capitalization by overtaking BNB.

What Sparked the CNBC Spotlight?

CNBC crypto correspondent MacKenzie Sigalos broke down the surge during the broadcast, highlighting three primary drivers that have positioned XRP as a standout in early 2026.

First, the long shadow of regulatory uncertainty has finally lifted. Ripple's multi-year legal battle with the U.S. Securities and Exchange Commission concluded in August 2025, removing a major overhang that had suppressed institutional interest for years. With clarity achieved, XRP is now viewed as a compliant asset ready for broader adoption, particularly in cross-border payments – its core use case.

Second, XRP represents a "less crowded trade" compared to the heavily positioned Bitcoin and Ethereum markets. Investors chasing higher percentage gains have rotated capital into XRP, seeing it as an alternative with more upside potential from a lower base.

Third, and perhaps most telling, inflows into U.S.-listed spot XRP ETFs have remained resilient. Unlike Bitcoin and Ethereum ETFs, which saw outflows during the Q4 2025 market dip as prices fell, XRP ETFs continued attracting capital. Since their launch in late 2025, these products have amassed over $1.3 billion in inflows, with nearly $100 million pouring in during the first week of 2026 alone. Notably, there hasn't been a single day of net outflows.

Sigalos noted that this contrarian buying behavior – piling into XRP during weaker market conditions – set the stage for the explosive January breakout. "XRP has been the quiet outperformer for months now," she said, emphasizing how the token held steady even as broader crypto faced volatility.

On-Chain Metrics Back the Momentum

Beyond the mainstream media buzz, on-chain data paints a similarly bullish picture. Exchange reserves of XRP have dropped to multi-year lows, suggesting whales are accumulating rather than selling. Meanwhile, transaction volume on the XRP Ledger has spiked over 50% in recent weeks, indicating growing real-world usage.

Social sentiment has also flipped decisively positive. Tools tracking "smart money" indicators show peak bullishness, reinforcing the narrative of institutional positioning ahead of the price move.

XRP's focus on fast, low-cost cross-border settlements continues to differentiate it. As Sigalos put it, "XRP is trying to be the exchange layer that moves value between currencies." With partnerships expanding and network activity rising, the utility case is strengthening at a time when many altcoins struggle for relevance.

Price Action and Analyst Targets

The rally has been impressive: from late 2025 levels below $2, XRP climbed to $2.40 in days, marking gains of 20-30% depending on the timeframe. Even after a 5% pullback amid profit-taking, the token remains up substantially year-to-date.

Analysts are taking notice. Standard Chartered has reiterated a bullish outlook, projecting XRP could reach $8 by the end of 2026 if ETF inflows continue at pace and adoption grows. More optimistic voices cite targets as high as $10 or beyond, driven by supply tightness and institutional demand. Conservative estimates see consolidation around $2.50-$3.00 in the near term, with potential for higher if momentum sustains.

However, risks remain. Overbought indicators like RSI suggest a possible cooling period, and broader market macro factors – such as interest rates or equity correlations – could pressure risk assets. A drop below key supports around $1.90-$2.00 might signal a deeper correction.

Why This Matters for the Broader Market

CNBC's endorsement underscores a maturing crypto landscape where utility and regulatory clarity can drive outperformance over pure speculation. XRP's rise highlights capital rotation: as Bitcoin and Ethereum become more "mature" and correlated with traditional markets, investors seek higher-beta plays with cleaner narratives.

This isn't the first time XRP has captured mainstream attention – it dominated headlines in 2017-2018 – but the context feels different now. With spot ETFs providing easy access for institutions and legal hurdles cleared, the setup appears more structural than speculative.

For traders and long-term holders alike, XRP's early 2026 performance serves as a reminder that crypto remains full of surprises. While Bitcoin remains the undisputed king, altcoins like XRP can steal the show when conditions align.

As the year unfolds, all eyes will be on whether sustained ETF demand and network growth can propel XRP toward those lofty analyst targets – or if the rally proves short-lived in a volatile market.