- In the first days of the new year, the crypto market is experiencing a development that astonishes even experienced market observers.
- While Bitcoin and Ethereum traditionally set the pace, an altcoin that was long considered a laggard is suddenly taking center stage: XRP.
The cryptocurrency XRP, under the care of Ripple, the service provider for international commercial payments, at times significantly outperformed the price development of the two industry leaders Bitcoin and Ethereum. What initially appears to be a positive volatility swing turns out to be the result of a combination of structural market forces, the effect of new regulation and a wave of institutional demand.
In the last 7 days, XRP has performed significantly better than Bitcoin (BTC) and Ethereum (ETH). XRP is about scarce 25 % increased week-on-week, while BTC only gained around +6% and ETH gained around +10% in the same period. This means that XRP has clearly outperformed in percentage terms and exceeded the altcoin performance of the two major market leaders. At the time of writing, XRP is at 2.21 USD.
The main cause is the capital flows into newly launched XRP ETFs. Within just a few weeks, billions of dollars flowed into these products, a volume that exceeded even optimistic forecasts. The result was a sharp price increase, which temporarily raised XRP to a level that many investors no longer considered possible after previous years of unfulfilled forecasts. But ETF inflows are only part of the story.
Institutional demand and regulation
A key driver of recent developments is the changing attitude of institutional investors. After the long-standing legal dispute between Ripple and the SEC was finally settled in 2025, the perception of XRP has fundamentally changed. The regulatory uncertainty that has plagued the token since 2020 is gone.
For professional investors, this is the prerequisite for even thinking about XRP-based financial products again. With the approval of several XRP ETFs in the USA and Europe, new opportunities opened up. Fund managers were now able to invest in regulated XRP products for the first time.
The result was a wave of capital that permanently changed the market. Ethereum is also benefiting from the new ETF dynamics, but growth expectations seem to be higher for XRP – not least because XRP is considered undervalued. This creates an environment in which even moderate capital inflows trigger disproportionate price reactions.
How sustainable is the new dynamic?
The market structure plays into the hands of XRP. Compared to Bitcoin and Ethereum, the market capitalization is significantly smaller, meaning that larger capital inflows cause much larger swings. While a three-digit million amount is hardly noticeable for Bitcoin, the same amount can trigger percentage price movements for XRP. This explains why XRP is at times clearly ahead of the two market leaders in relative terms.
Still, some experts warn that a significant portion of the recent rally is based on short-term capital flows, which can turn around just as quickly. Others point out that although XRP is now clearly regulated, it now has the problem of having to catch up with other payment providers because it was only active in the market for a good five years “with the handbrake on” due to the SEC process.
However, it is already clear that XRP has shaped the beginning of 2026 like no other altcoin. The combination of ETF inflows, institutional realignment and market effects has put XRP in a position that long seemed unattainable. Whether this creates a sustainable trend or just a powerful moment in the cycle – the market will decide in 2026.
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