XRP Surpasses BNB – Is Huge ETF Demand Driving This Rally?

XRP has recently surpassed Binance Coin (BNB) to become the fourth-largest cryptocurrency, marking a notable shift in the crypto landscape. This rise has been fueled by substantial interest from institutional investors, particularly through spot ETFs. This article delves into the reasons behind XRP's recent performance and what it may mean for the future.

Key Takeaways

XRP has reclaimed its position, overtaking Binance Coin (BNB) to become the fourth-largest cryptocurrency.
A significant driver of XRP's rise is the heightened interest from institutional investors, particularly through spot ETFs.
XRP saw a net inflow of $13.6 million in just a day, with a total inflow now reaching $1.18 billion.
Technical indicators show strong buying momentum for XRP, suggesting sustained growth.
On-chain data indicates a sharp decline in XRP balances on centralized exchanges, hinting at tightening supply.

Understanding XRP’s Recent Surge

For nearly five years, XRP was more prominent in a Manhattan courtroom than in the world of cryptocurrency utility. However, the start of 2026 signifies a turning point.

By overtaking Binance Coin (BNB), XRP has emerged as the fourth-largest cryptocurrency, indicating a new trend in the crypto market.

Driving Factors Behind XRP's Rise

XRP's recent separation from the larger altcoin market can be attributed to a significant increase in interest from institutional investors. The latest statistics from SoSoValue reveal that Ripple's spot ETFs attracted a net influx of $13.6 million in just 24 hours. In total, the net inflows have ballooned to an impressive $1.18 billion, with assets now amounting to $1.37 billion.

Even though XRP's figures are remarkable, they reflect a broader institutional revival in the cryptocurrency sector. On the same day, Bitcoin (BTC) ETFs gained $471 million in new investments, according to Farside Investors, while Ethereum (ETH) ETFs registered $174 million in inflows. However, XRP’s gains stand out as they signify a distinct change in market dynamics, drawing liquidity and attention away from established players.

Technical Insights

The influx of capital has significantly influenced XRP's price movements. In the past 24 hours, XRP's price climbed by 3.84%, reaching $2.07. Unlike previous speculative rallies, the current spike is supported by solid technical indicators. The Relative Strength Index (RSI) is firmly in the bullish zone, pointing to strong buying pressure without entering overbought territory. Additionally, the MACD line has crossed above the signal line, indicating a classic bullish crossover often seen before prolonged price increases.

XRP Price Action
Source: Trading View

While XRP has displayed nearly a 4% gain, BNB is experiencing a downturn, trading at $884.88, reflecting a 1.48% fall over the same period.

What Lies Ahead?

Although XRP’s price has stabilized slightly below the critical $2 threshold, on-chain analytics indicate a significant tightening in supply. Glassnode reports that XRP balances on centralized exchanges have fallen to about 1.6 billion tokens, marking their lowest point since 2018. This decline constitutes a massive 57% drop from late 2025 highs.

If this trend of increasing demand continues through ETF speculation and the expansion of Ripple’s payment ecosystem, XRP may be approaching its most pivotal moment in almost ten years.

Conclusion

XRP’s recent performance underscores the growing interest and confidence from institutional investors. With changing dynamics and technical indicators suggesting a bullish trend, XRP’s journey is one to watch closely. As it continues to gain traction, the cryptocurrency landscape may very well be undergoing a significant transformation.