CNBC has described the Ripple-linked XRP token as the "breakout trade" of 2026.
The network has noted that the token tied to the San Francisco-headquartered enterprise blockchain firm is up by more than 20% since the start of the year.
It also noted that XRP climbed to 3rd place by market value, surpassing the BNB token.
"XRP is trying to be the exchange layer that moves money between currencies," CNBC's MacKenzie Sigalos said while commenting on the token's success.
The key reasons why XRP is rallying
CNBC has identified three major reasons why XRP is rallying. First of all, there is no regulatory overhang now that Ripple has wrapped up its fight with the SEC. For years, the "overhang" was the fear that the U.S. Securities and Exchange Commission (SEC) would successfully classify XRP as an unregistered security. This possibility forced U.S. exchanges to suspend trading and prevented regulated institutions from holding it. However, Ripple finally wrapped up the legal battle last year.
Secondly, XRP is viewed as a less crowded trade than Bitcoin and Ether, which might make it more attractive. Bitcoin and Ether are currently heavily correlated with global macro trends and equity markets. XRP has less "legacy baggage" in terms of positioning. This allows it to decouple and act as a high-beta asset that can outperform when capital rotates out of the crowded majors. In early 2026, XRP managed to decouple from the broader market.
Finally, XRP ETF flows have held up even during the Q4 correction. "Investors kept adding money to XRP-focused funds," the network said. Retail traders might panic-sell during a correction, but the ETF investors used the Q4 dip to accumulate. This built the pressure that was released in the January 2026 rally.
Dan Burgin
Alex Dovbnya
Caroline Amosun