Crypto analyst Amonyx recently highlighted a CNBC segment that named XRP the hottest cryptocurrency trade of the year, outperforming Bitcoin and Ethereum. This recognition comes as XRP exchange-traded funds (ETFs) continue to attract investments, even while other crypto funds experience withdrawals.
In a post on X, Amonyx shared the CNBC video and questioned whether the market is recognizing a shift or is on the verge of one. CNBC’s Mackenzie Sigalos pointed out that XRP began drawing significant investor interest late last year, with money flowing into XRP ETFs as spot Bitcoin and Ethereum ETFs saw outflows.
Sigalos suggested that investors likely viewed XRP as a less saturated trade compared to Bitcoin and Ethereum during the crypto market downturn in last year’s fourth quarter. She noted that this bet has already proven profitable, with XRP posting a 20% gain at the start of the year.
The report also touched on XRP’s growing appeal, citing its utility in cross-border payments and its status—alongside Solana—as one of the most popular altcoins. Sigalos added that both XRP and Solana may have more upside potential than Bitcoin and Ethereum. She also observed that users and investors are increasingly turning to faster, cheaper networks like Solana and XRP Ledger for payments and tokenization, especially as the XRP Ledger recently surpassed Solana in tokenized value, according to RWA.xyz.
Data from SoSoValue shows that XRP ETFs have maintained a five-day streak of net inflows, despite broader market volatility. These funds have seen only six days of outflows since the beginning of the year and currently hold net assets of $1.02 billion, accounting for about 1.20% of XRP’s total market capitalization.
However, a CoinShares report indicates that XRP ETFs attracted lower inflows last week compared to Bitcoin, Ethereum, and Solana funds. While XRP funds saw weekly inflows of $1.9 million, Bitcoin, Ethereum, and Solana funds recorded $881.5 million, $116.9 million, and $53.8 million, respectively.
At the time of writing, XRP is trading around $1.36, showing gains over the past 24 hours, according to CoinMarketCap data.
Frequently Asked Questions
Of course Here is a list of FAQs about XRP gaining attention as a promising investment structured from beginner to more advanced questions
Beginner Definition Questions
1 What exactly is XRP
XRP is a digital asset and the native cryptocurrency of the XRP Ledger a decentralized blockchain built for fast and lowcost financial transactions especially crossborder payments
2 Why are people suddenly talking about XRP more than Bitcoin or Ethereum
The main catalyst was a major US court ruling in July 2023 that declared XRP is not a security when sold to the general public This removed a huge cloud of regulatory uncertainty that had been hanging over it for years unlike Bitcoin and Ethereum which still face ongoing regulatory scrutiny
3 Isnt Bitcoin the digital gold Why look at XRP instead
Yes Bitcoin is often seen as a store of value XRP is positioned differentlyas a bridge currency for efficient money movement Investors are looking at XRP for its specific utility in global finance not as a direct replacement for Bitcoin
Benefits Investment Case Questions
4 Whats the main benefit or use case for XRP
Its primary use is for institutional crossborder payments Banks and payment providers can use XRP to source liquidity and settle transactions in 35 seconds for a fraction of a cent compared to traditional systems that can take days and cost much more
5 What makes XRP a promising investment right now
Beyond the legal clarity proponents point to 1 Speed Cost Its technology is inherently faster and cheaper than Bitcoin and Ethereum 2 RealWorld Adoption Its already used by hundreds of financial institutions through Ripples solutions 3 Potential Growth If global payment adoption increases demand for XRP could rise
6 Who is behind XRP Is it just a companys coin
XRP and the XRP Ledger are decentralized and opensource However the company Ripple is the biggest promoter and holder of XRP using it in its products This relationship is a doubleedged swordRipple drives adoption but its actions significantly influence XRPs market perception
Common Problems Risks
7 What are the biggest risks of investing in XRP