- XRP jumps 25% in the first week of 2026.
- ETF inflows and bullish sentiment drive the rally.
- Declining exchange reserves suggest long-term holding.
The new year has started on a high note for XRP, which has surged by 25% in the first week of 2026. CNBC recently dubbed it the “hottest crypto trade of 2026,” highlighting the token’s strong momentum and growing investor confidence. This rapid rise comes as XRP outpaces most major cryptocurrencies in early performance, drawing attention from both retail and institutional players.
ETF Inflows Fuel XRP’s Uptrend
A key factor behind XRP’s rally is the surge in exchange-traded fund (ETF) inflows. Crypto-focused ETFs that include XRP have seen significant capital pouring in, signaling rising institutional interest. These investments not only increase demand but also add credibility to XRP’s position in the broader market. Analysts believe that continued ETF support could help maintain XRP’s upward momentum through Q1 and beyond.
Shrinking Exchange Reserves Point to Long-Term Holding
Another bullish indicator is the steady decline in XRP exchange reserves. According to on-chain data, fewer XRP tokens are available on trading platforms, suggesting that investors are moving their holdings to cold storage or long-term wallets. This trend reflects growing confidence in XRP’s future price potential and reduces immediate sell pressure—further supporting the current price surge.
With these strong fundamentals in place, XRP’s performance has earned it mainstream recognition. As the broader market awaits regulatory clarity and macroeconomic shifts, XRP appears well-positioned to capitalize on both institutional adoption and retail enthusiasm.
