New signal of capital rotation: CNBC names XRP as the hottest of the year, with gains surpassing BTC and ETH

CNBC publicly named XRP as the “Hottest Cryptocurrency of the Year” on the financial program “Power Lunch.” This evaluation reflects an interesting phenomenon: at the start of 2026, the market leader is not Bitcoin or Ethereum, but this once controversial payment token. According to the latest news, XRP has gained over 20% since the beginning of the year, with a market cap rising to the fourth largest globally. This change in ranking has become a key basis for CNBC’s assessment.

Data Comparison: Why XRP Was Highlighted

Performance Leading the Gains

CNBC host Brian Sullivan straightforwardly stated that XRP’s performance is the most impressive. Specifically, XRP opened at $1.84 on January 1, 2026, then quickly strengthened, reaching a high of $2.41, with a staged increase of 30.97%. The current price is around $2.28, with a year-to-date cumulative increase still exceeding 22%.

In comparison, Bitcoin rose from $87,508 at the start of the year to a high of $94,762, an increase of about 8.28%; Ethereum rose from $2,967 to $3,303, an increase of approximately 11.32%. This means XRP’s increase is 2.6 times that of Bitcoin and twice that of Ethereum.

Changes in Market Cap Ranking

XRP’s market cap has risen to the fourth position globally, approximately $13.806 billion, with a market share of 4.34%. This change in ranking is crucial to CNBC’s evaluation because it indicates that capital is flowing toward this previously heavily regulated asset.

Deeper Reasons: Not Just Short-term Speculation

Reflection of Structural Capital Flows

CNBC reporter MacKenzie Sigalos pointed out in analysis that XRP’s rise is not just short-term speculation but the result of multiple factors working together. The most noteworthy is the performance of ETFs: XRP ETFs continued to attract funds during market downturns, with a net inflow of $1 billion in the first month, and no net outflows. This contrasts sharply with the volatility seen in Bitcoin and Ethereum ETFs.

What does this phenomenon indicate? The attitude of institutional investors is changing. When they no longer blindly chase top assets, they turn their attention to projects with clear use cases.

Re-evaluation of XRP’s Relative Advantages

Sigalos believes that XRP is more “easily tradable,” more flexible, and more likely to benefit from capital rotation compared to BTC and ETH. Here, “easy trading” refers not only to liquidity but also to larger price fluctuation ranges, making it more attractive to yield-seeking capital.

Meanwhile, XRP’s long-term positioning in cross-border payments, its transaction speed advantages, and low-cost features remain core reasons for its appeal to real-world financial institutions. According to related information, activity on the XRP Ledger has recovered to pre-Christmas levels, with transaction volume and active addresses stabilizing, indicating seasonal slowdown rather than structural damage. This suggests that on-chain usage has not weakened.

The Broader Context of Capital Rotation

In the context of a generally weak cryptocurrency market in Q4 2025, capital has already begun to preemptively allocate to XRP. Market focus is shifting from top assets to projects with clear use cases, with XRP and Solana gradually being viewed as “the next hot choices.”

This reflects an important market principle: when major assets have limited gains, capital naturally flows toward assets with greater flexibility and application potential.

Reflection on Market Significance

Regulatory Clarity as a Bonus

XRP being highlighted by CNBC is also closely related to improvements in the regulatory environment. Related information mentions that with clearer regulatory policies in 2025, institutional interest in XRP has surged. The long shadow of SEC litigation is dissipating, giving institutional investors more confidence to participate.

Specific Signs of Institutional Interest

According to the latest news, Ripple Labs completed a $500 million funding round, and the newly launched XRP ETF products have attracted substantial funds. These are signals of formal institutional entry. Meanwhile, Ripple recently transferred 300 million XRP (worth about $653 million) to unknown wallets, which has also drawn market attention to its strategic layout.

Summary

CNBC’s designation of XRP as the “Hottest Cryptocurrency of the Year” may seem like a media comment, but it actually reflects deeper shifts in market capital allocation. XRP’s outperformance of Bitcoin and Ethereum is not accidental but a natural result of capital moving from top assets toward projects with real-world applications. The continued attraction of ETFs, on-chain activity recovery, and rising institutional interest all point in the same direction: the market is re-evaluating this once-marginalized payment token.

Of course, this also reminds us that in the crypto market, leaders change as capital rotates. How long XRP can maintain its current lead depends on whether its use cases can truly be implemented and whether institutional funds continue to support it. But at least for now, CNBC’s evaluation captures a real market signal: capital is rotating, and opportunities are shifting.