Just a week into 2026, XRP has emerged as the most profitable cryptocurrency in the market, outperforming its strong competitors, Bitcoin and Ethereum. CNBC’s Power Lunch host Brian Sullivan has identified XRP’s performance in the first week of 2026 as the “hottest crypto trade” in 2026. XRP is the “new cryptocurrency darling”, according to him.
XRP’s renewed endearment has been attributed to reasons such as the surge in its price in the new year, strong ETF activity, favorable social sentiment, on-chain metrics, and Ripple’s strong stand in the Japanese financial markets.
XRP Price Surges in the New Year
It is just a week into the new year, and XRP has been showing commendable performance. Sullivan’s praise for XRP does not come as a surprise. XRP has gained a 25% surge in price from the price on January 1, as of 7th of January 2026, whereas Bitcoin and Ethereum have only gained 6% and 10%, respectively. This spike in performance is not merely speculative but is solid and is expected to have long-term implications rather than a short-term spike.
XRP’s ETF Activity Remains Strong
All four spot ETFs of XRP, namely Bitwise XRP ETF, Franklin Templeton XRPZ, 21Shares TOXR, and Canary Capital XRPC, have been driving strong inflows since the beginning of 2026. Reports indicate cumulative inflows exceeding $1 billion from late 2025 launches, continuing steadily into the new year.
In early January 2026, the total inflows for these XRP spot ETFs reached approximately $1.4 billion. For instance, the XRP ETFs have combinedly recorded a net inflow of $46 million on January 5, pushing assets to $1.65 billion, with no net outflows recorded. On the other hand, Bitcoin and Ethereum ETFs saw outflows on key days.
Social Sentiment and On-chain Developments Add to the Bullish Outlook
XRP has lately been experiencing a bullish social sentiment, supported by on-chain developments. With the price of XRP stabilizing near $1.90 and XRP’s Fear and Greed Index improving from 24 (Extreme Fear) to 46 (Fear), the social sentiment has changed from that of skepticism to confirmed bullishness. Historically, such situations have preceded an upside rally for XRP, which is expected in this case, too. AI analysts from Market Prophit have confirmed such a trend for XRP.
More importantly, the transaction volumes of XRP have been seeing a rise in 2026, and the exchange balances have been declining, suggesting strong accumulation of the currency. Consistent ETF inflows without outflows underscore institutional confidence, complementing XRP’s utility in payments via RLUSD scaling.
Ripple has been strengthening its Presence in Japan
Ripple has been strengthening its hold in the Japanese economy through partnerships with major Japanese financial institutions, including Mizuho Bank, SMBC Nikko, and Securitize Japan. These efforts focus on integrating XRP Ledger (XRPL) technology into institutional finance, including the formation of tokenized assets and stablecoins.
Ripple announced a major collaboration in late December 2025 with Mizuho Bank, SMBC Nikko Securities, and Securitize Japan to advance XRPL-based enterprise solutions like stablecoins, real-world assets (RWAs), and DeFi infrastructure. Long-standing ties with SBI Holdings, which handles over 80% of Japan’s banking sector via RippleNet, are expanding further, with RLUSD stablecoin distribution set for Q1 2026 through SBI VC Trade.
Ripple’s stance in the Japanese market is of much importance. Japan now represents over half of Ripple’s global payment volume. Japan’s favorable tax regimes have also contributed to Ripple’s stronghold in the country. Various market analysts are viewing these developments as the foundation for XRP’s long-term price appreciation.
