XRP (CRYPTO: XRP) has gained roughly 8% over the past month, outperforming Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH), which have traded largely flat amid heightened market volatility.

What Happened: CNBC analyst MacKenzie Sigalos on Tuesday said "the breakout trade of the 2026 crypto rally isn't Bitcoin or Ether — it's XRP".

The payments-focused token continued to see steady ETF inflows through Q4, even as the broader crypto market experienced a pullback.

XRP's recent weekly rally of nearly 20% has pushed it ahead of (CRYPTO: BNB) by market capitalization.

Factors driving the rally include:

• XRP's payments-driven use case, particularly for cross-border settlements, where Ripple positions the token as a fast and efficient bridge asset between currencies
• A less crowded trade relative to Bitcoin and Ethereum
• The clearing of regulatory overhang following Ripple's resolution of its SEC case
• Continued inflows into XRP-focused investment products during Q4, even as Bitcoin ETF flows softened.

Why It Matters: Sigalos said some investors appear to be rotating into XRP as an alternative with perceived upside from a lower valuation base.

Growing concerns around potential forced selling in Bitcoin and Ethereum, tied to digital asset treasury companies may provide further fuel for the rally.

That said, skepticism remains around near-term adoption of blockchain-based cross-border banking solutions, given unresolved regulatory and interoperability challenges globally.

Some market participants view the current XRP move less as a direct bet on widespread banking adoption and more as a hedge against near-term market risks and ongoing uncertainty in the broader crypto regulatory landscape.

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