XRP has been categorized as the breakout trade of 2026 by CNBC, a designation that only a handful of tokens receive. The statement by CNBC shows a change in tone that has been highly anticipated by token holders for several years.
The value of XRP has increased approximately twenty percent in 2021 which has put the token at number three in terms of market capitalization; gaining ground on BNB without any hype or mania involved but instead through continued purchasing activity and returning buyer interest.
Due to ongoing legal actions and uncertainty regarding its future, Ripple has endured an uphill battle for years; with the legal issues resolved the market appears to be responding accordingly.
Also Read: XRP Eyes $2.65 After Strong Recovery, $2.27 Becomes Critical Support
XRP Finds its Role as Global Exchange Layer
MacKenzie Sigalos of CNBC offered a simple explanation of what makes up the core value of XRP. According to her, the purpose of the altcoin is to act as the layer to exchange currency by moving money between various currencies. It does not aim to replace Bitcoin or replicate Ethereum but rather serves as a niche product.
Before Ripple’s protracted legal battle with the SEC in the USA was over, investor uncertainty existed as to the legality of the token. Without the risk of regulatory uncertainty for institutional investors, everything has changed. Risk managers prefer to see regulatory clarity, and this is now an option with the Ripple token.
XRP Benefits From Being Less Crowded Trade
According to CNBC, there are three distinct reasons for the growth in XRP’s price. Firstly, the finalization of regulatory approval for the token. Secondly, the token’s current positioning appears to be much less crowded than both Bitcoin and Ethereum.
There is currently a large amount of attention focused on both Bitcoin and Ethereum. Many larger investment firms have already invested a significant amount of capital into both markets. Ripple, however, gives investors an opportunity to diversify their portfolio without moving away from the main asset classes.
The inflow of funds invested in XRP ETFs has remained very strong over the past week even through this most recent decline in the fourth quarter of 2018. While the vast majority of the entire cryptocurrency market has seen recent declines in price, both retail and institutional investors have continued to add to their holdings in ETFs. This behaviour clearly points to conviction as opposed to speculation.
Generally, the inflows into an ETF will provide an indication of the institutional investors’ intentions before the price of the asset fully reacts. In Ripple’s case, the flow of funds has remained intact. This indicates that investors are looking at the altcoin for a longer-term strategy, as opposed to merely taking a short-term position.
Time will tell if CNBC’s prediction will be correct, but it is becoming evident that if the year 2026 requires a breakout, then Ripple has already begun to develop that breakout case.
