The strong start XRP has made in 2026 is drawing attention across the crypto market.

According to Akanksha Saxena, a Binance Square KOL, the recent momentum goes beyond short-term price action and is supported by several clear signals aligning at the same time.

In a recent post on X, Saxena outlined four reasons XRP is increasingly on investors’ radar this year.

ETF Demand Is Building Momentum

One of the key drivers highlighted is rising ETF demand. Spot XRP ETFs have attracted close to $80 million in inflows since the start of the year. This follows consistent inflows on trading days since the November launch of XRP ETFs. Notably, total inflows now stand at $1.2 billion, with $1.53 billion in assets under management.

However, XRP recorded its first-ever net outflow of $40.8 million on Wednesday. This was driven by 21Shares’ massive sale of $47.25 million worth of XRP. Meanwhile, other asset managers posted positive flows.

XRP Is Outperforming Major Cryptocurrencies

Performance data is also strengthening XRP’s case. Since January 1, XRP has risen around 31% from its 2025 close of $1.84 to reach $2.41 on January 6. This move outperformed the gains in both Bitcoin and Ethereum.

However, at press time, XRP and the broader market are undergoing a pullback, impacting 2026 performance. XRP now trades at $2.08, down 7.15% over the past day. Despite this, it remains up 12.76% over the past week.

Market Sentiment Has Turned Bullish

Another notable shift is sentiment. Social discussions and market positioning around XRP have become increasingly positive.

As of December 23, sentiment around XRP was highly negative, which, according to Santiment, often precedes price rallies. This pattern proved accurate in the first week of January.

A follow-up comment from Santiment analyst Brian Quinlivan confirmed that sentiment has improved but remains far from euphoric. Notably, Quinlivan noted that XRP’s 30-day MVRV has turned slightly positive at around 1.5%, indicating that recent buyers are near breakeven and selling pressure is limited.

Mainstream attention has followed as well, with CNBC recently describing XRP as the hottest crypto of the year. CNBC cited its sharp gains and outperformance relative to Bitcoin and Ethereum.

Network Activity Is Picking Up

On-chain data is reinforcing the price action. Recent data from Santiment shows XRP whale activity has surged to levels last seen in October 2025.

It highlights a sharp increase in whale transactions, with transfers exceeding $100,000 reaching a three-month high on January 6, totaling 2,802 transactions. Elevated activity has persisted throughout the week, following 2,170 similar transactions on January 5.

Whale transactions above $1 million also rose significantly, jumping from around 1,914 to over 2,400, signaling renewed large-holder interest in XRP.

With ETF inflows, strong relative performance, improving sentiment, and higher network activity, XRP is shaping up as an asset to watch in 2026. Some believe the coin could set a new all-time high this year.

In an interesting commentary, Altcoin Daily, a leading crypto media outlet, has suggested that some people criticize XRP without fully understanding it.

XRP remains one of the most criticized crypto assets in the market despite maintaining a top 5 position consistently for years and boasting an impressive value proposition around cross-border payments. Amid the persistent criticisms, the crypto asset has also recorded occasional upswings, up 16% this year.

Some XRP Critics Do Not Understand the Asset

Most recently, the Altcoin Daily media outlet, run by brothers Aaron and Austin Arnold, pointed out that some of these criticisms against XRP come from people who do not actually understand the asset. In a recent post on X directed at crypto investors, Altcoin Daily charged market participants not to waste their time with these people.

For instance, last year, XRP came under heavy attacks from individuals within the Solana community, with some of them citing a lack of utility. Notably, last November, Vibhu Norby, Solana Foundation’s Product Marketing Head, argued that, while he wishes to see XRP succeed, the token and its network lag in terms of user traction.

Vibhu suggested that XRP had “mediocre” traction, especially when compared with competitor chains like Solana. According to him, investors who have committed their funds to XRP should reconsider their position. A week later, Vibhu sarcastically said investors should sell their house, kids, beds, and other valuables to buy XRP, mocking a popular mantra within the XRP community.

However, a month after this FUD campaign, Vibhu retraced his steps, admitting that his understanding of XRP and its community had matured. According to him, he came to “understand the uniqueness of XRP.” This occurred shortly after Hex Trust announced plans to launch a wrapped XRP version that could bridge to the Solana network.

Further Instances of Criticism Turned Praise

In a separate instance, market veteran Raoul Pal argued in August 2024 that XRP investors only held onto the tokens due to a “cult-like” mentality, insisting that they should avoid old coins like XRP. Pal suggested that these investors could miss another bull run. However, in December 2024, after XRP’s 284% surge a month before, Pal admitted he was wrong about the token.

Moreover, billionaire Mike Novogratz, who persistently criticized XRP years back, also retraced his words, noting in November 2025 that XRP remains one of the few tokens that successfully turned into money. These instances align with Altcoin Daily’s recent commentary, which indicates that some of XRP’s critics do not actually understand the asset. 

Meanwhile, the outlet’s latest disclosure builds on a series of encouraging commentaries it has made surrounding XRP. Last November, Altcoin Daily suggested that Bitcoin is the reserve asset, while XRP remains the liquidity bridge. In April, the channel noted that XRP was battling an “astounding” level of misinformation.

An XRP community commentator recently suggested that utility has a more lasting impact than headlines, arguing that those who hold XRP already understand this.

This commentary came from Digital Ascension Group CEO Jake Claver amid growing institutional and media interest in XRP. Notably, after a turbulent Q4 2025, XRP has begun 2026 on a bullish note, with chart data confirming a 16.11% gain in the first week of this year, offsetting the 11.54% loss from 2025.

“Headlines Win the Day”

While this recovery effort comes amid a broader market rebound, XRP’s outperformance has captured mainstream media interest. For one, CNBC recently featured the token in a segment of its Power Lunch show. During the segment, the host, Dominic Chu, called XRP the “hottest crypto trade” of 2026.

While this has triggered investor enthusiasm, Claver believes headlines such as this are not as important to XRP’s long-term value as utility, a feature the crypto asset already boasts, but which most tend to neglect. In a post today, Claver admitted that “headlines win the day.”

For context, this confirms the trend around bullish headlines. Notably, when such bullish developments emerge and dominate discussions in the broader crypto community, a surge in retail interest leads to massive demand, which often pushes the price of the token upward for a brief moment. 

Utility Wins the Decade

However, when the dust settles and investors start taking profit, the uptrend reverses. Considering this pattern, Claver insisted that “utility wins the decade.” Specifically, while headlines could push XRP’s price up for a day or so, utility has the potential to lift the price for longer periods of time and sustain the uptrend.

XRP’s value proposition has always centered on its ability to facilitate cross-border payments at a cheaper and faster rate than traditional means. Community figures such as Claver have consistently championed this narrative, arguing that XRP remains highly undervalued when considering its utility in payments.

For instance, estimates suggest that banks and financial institutions hold around $10 trillion worth of liquidity for global cross-border transactions. In a June 2025 report, The Crypto Basic presented a response from AI chatbot ChatGPT that the XRP price could rise to $42 if XRP captured just 25% of this liquidity.

Notably, this aligns with Claver’s suggestion that utility has a more important impact on an asset than daily headlines. In closing, the market pundit stressed that investors who have invested in XRP already understand this principle. Essentially, it takes an understanding of the importance of utility to maintain faith in a utility-driven token like XRP.

However, not everyone believes in XRP’s value proposition. For one, when Swift confirmed plans to incorporate blockchain into its financial stack last year, critics argued that the narrative around XRP replacing Swift in the cross-border sector had collapsed. However, XRP proponents insisted that the development does not threaten XRP’s utility.