Tom Kushner XRP is outperforming Bitcoin and Ether in early 2026, fueled by record ETF inflows, growing investor sentiment, and Ripple’s expanding influence in Asia.
XRP’s Explosive Start Marks a Turning Point in the Crypto Market
The new year has barely begun, yet the crypto spotlight is already shifting. In the first week of 2026, XRP outperforming Bitcoin and Ether has become the defining market trend, with Ripple’s token soaring over 25% while the two largest cryptocurrencies posted single-digit gains. The surge, driven by strong ETF inflows, positive investor sentiment, and strategic global partnerships, is positioning XRP as one of the most dynamic digital assets of the year.
Market analysts say this shift signals growing investor appetite for alternative assets beyond the established giants. XRP’s early-year rally has sparked renewed optimism that Ripple’s long-term vision for blockchain-based payments and institutional adoption may finally be gaining sustained traction.
ETF Inflows Power the XRP Momentum
The biggest catalyst behind XRP outperforming Bitcoin and Ether appears to be the sustained demand for XRP exchange-traded funds. Data from Coinglass reveals that XRP ETFs have attracted nearly $100 million in inflows in just the first few trading sessions of 2026, marking the strongest weekly intake since mid-November.
What’s even more remarkable is that these inflows have occurred without a single day of net outflows, pushing total assets under management in XRP ETFs to over $1.15 billion. Unlike Bitcoin or Ether ETFs, where inflows often move in tandem with price action, XRP’s rise has been led by investors who accumulated during Q4’s lull, viewing it as a contrarian opportunity.
That contrarian strategy is paying off. The current wave of ETF demand highlights how investor psychology around XRP is shifting from speculative trading to structured exposure through institutional-grade products.
On-Chain Data Shows Bullish Fundamentals
Beyond ETFs, on-chain metrics further validate XRP’s strong start to the year. Exchange reserves of XRP on Binance have dropped to their lowest levels in nearly two years, signaling that holders are moving coins into private wallets rather than preparing to sell.
This decline in exchange balances coincides with a 50% rise in transaction volumes over the past two weeks, according to XRPscan data. Network activity is accelerating, with a notable increase in wallet creation and cross-border settlement usage on the XRP Ledger.
Social sentiment analysis from Market Prophit adds another layer of bullish momentum. Both retail and “smart money” investor sentiment have turned decisively positive, suggesting growing confidence that XRP’s rally may extend as long as macro conditions remain favorable.
Still, some analysts caution that momentum-driven rallies can quickly fade if ETF inflows slow or market volatility spikes. Yet, the underlying fundamentals behind XRP outperforming Bitcoin and Ether this time appear far more diverse than in previous speculative phases, potentially making the uptrend more sustainable.
Ripple’s Strategic Expansion Strengthens Market Position
Ripple’s expanding global partnerships have also reinforced investor confidence. The firm recently announced collaborations with several major Japanese institutions, including Mizuho Bank, SMBC Nikko, and Securitize Japan. These alliances aim to accelerate the adoption of XRP Ledger technology within Japan’s financial ecosystem one of Asia’s most crypto-progressive markets.
This comes on the heels of Ripple’s conditional approval from the US Office of the Comptroller of the Currency to establish the Ripple National Trust Bank, a move that could integrate blockchain payments more deeply into the traditional banking infrastructure.
Ripple President Monica Long described the company’s late-2025 fundraising and $40 billion valuation as validation of its expanding institutional relevance. While Ripple has no immediate plans for an IPO, its strategic positioning across global payment corridors is strengthening the case for long-term XRP demand.
Investor Confidence Builds as XRP Reclaims Market Leadership
The narrative around XRP outperforming Bitcoin and Ether goes beyond short-term price action. It represents a growing confidence that the asset is evolving from a speculative token into a key player in the global payments landscape.
With ETF participation broadening, on-chain data improving, and cross-border adoption expanding, XRP is beginning 2026 with a rare combination of institutional support and retail enthusiasm. While risks such as macroeconomic uncertainty and regulatory developments still loom large, XRP’s multi-front progress underscores that its recent rally may not just be a temporary market anomaly.
The next few months will reveal whether Ripple’s momentum can sustain its lead over Bitcoin and Ether, but for now, XRP’s resurgence is rewriting the crypto leaderboard one ETF inflow and partnership at a time.
Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards.
