XRP is Outperforming Bitcoin and Ethereum: What are the Reasons?

The Success of XRP: Outperforming Bitcoin and Ethereum

XRP has made a fast start to 2026, recording a 20% increase in value since the beginning of the year. CNBC has dubbed XRP as the "new favorite crypto," managing to leave competitors like Bitcoin and Ethereum behind. However, the performance of XRP is backed by many complex factors.

Market Dynamics and ETF Inflows

Recently, the impact of exchange-traded funds (ETFs) on XRP has drawn attention. CNBC host Brian Sullivan noted that XRP's popularity is rising. Particularly in the fourth quarter, increased interest in XRP ETFs has contributed to the rise in the asset's price. According to Coinglass data, approximately $100 million in ETF inflows have occurred since the beginning of the year, reaching a total of $1.15 billion.

Social Sentiment and On-Chain Activity

Additionally, social media sentiment for XRP is showing an upward trend. AI analyses indicate an increase in both retail and "smart money" sentiment. According to CryptoQuant, the decline in Binance exchange reserves suggests that investors' willingness to sell XRP is decreasing. In the past two weeks, a more than 50% increase in XRP transactions has been observed.

Ripple's Partnership Moves

Ripple Labs is drawing attention with its partnerships with major financial institutions in Japan. By collaborating with significant names like Mizuho Bank, SMBC Nikko, and Securitize Japan, it aims to increase the adoption of the XRP Ledger. Developments in this area could help XRP gain a broader foothold in global markets.

Conclusion

The superior performance of XRP against Bitcoin and Ethereum is rooted in multiple factors. ETF inflows, social sentiment, and strategic partnerships highlight XRP, but market conditions and regulatory developments must also be considered.