XRP has made headlines by overtaking BNB to capture the title of the third-largest cryptocurrency by market capitalization, as reported on Saturday, January 3, 2026. The token experienced a surge of over 8.3% within a 24-hour timeframe, reaching a price point of $2. This impressive jump elevated XRP’s market cap to approximately $123.26 billion, surpassing BNB’s valuation of $120.69 billion.
In the grand scheme of cryptocurrency rankings, Bitcoin continues to reign supreme with an astonishing market capitalization of $1.8 trillion, while Ethereum maintains its second-place position at $377 billion. When excluding stablecoins from the equation, XRP now ranks just behind Bitcoin and Ethereum globally.
Trading Volume Booms with Heightened Activity
The recent rally in XRP is notably accompanied by a staggering increase in trading volume. Over the past day, XRP trading activity surged by 175%, bringing the volume to a remarkable $3.8 billion. This surge highlights the growing interest among investors and traders amidst a backdrop of favorable market conditions in the digital asset space.
Remarkably, XRP’s value still rests about 44% below its all-time high of $3.60, reached in July 2025. This latest performance follows multiple rally phases throughout 2025, with peaks at $2.83 in January and $3.55 in July that momentarily placed XRP ahead of Tether’s USDT.
In tandem, Bitcoin has rallied back to $90,000, while Ethereum has reached $3,100. Other altcoins, including Solana and BNB, have also participated in the upward trend, trading at $132 and $877 respectively. The positivity is not limited to cryptocurrencies, as crypto-related stocks and mining companies have also seen notable gains, with some appreciating by as much as 10%.
ETF Inflows Enhance XRP’s Market Standing
In a further boon for XRP, US spot XRP ETFs have exhibited robust inflows, demonstrating continued investor confidence. Since their introduction in late 2025, these ETFs have attracted approximately $1.2 billion in net capital, with total assets under management now surpassing $1.37 billion, according to available data.
The strong performance of these ETFs is underpinned by the acquisition of more than 500 million XRP tokens, creating consistent demand from institutional investors. Analysts believe that the inflows into these funds are a key factor contributing to XRP’s recent strength.
However, a recent report from Santiment highlighted a prevailing negative sentiment in the wider cryptocurrency landscape, noting a 20-30% increase in bearish commentary since November 2025. The Crypto Fear & Greed Index has dipped to 24, indicating a state of extreme fear within the market.
Debate Surrounds Locked Supply vs Exchange Reserves
Despite the positive developments for XRP, a significant discussion persists regarding the impact of locked XRP on its price dynamics. DeFi projects like mXRP are set to lock $10 billion worth of XRP, while the Flare Network aims to secure 5 billion XRP by mid-2026. This shift has provoked attention towards supply-related influences on price movements.
At the same time, cryptocurrency exchanges continue to hold substantial amounts of XRP, with data indicating that 15.4 billion tokens remain across 26 trading platforms, including heavyweights like Upbit, Binance, and Bithumb. Of this, Upbit holds a whopping 6.25 billion XRP tokens.
Legal analyst Bill Morgan has presented a counterpoint to the narrative surrounding supply shock, highlighting that exchange-held XRP constitutes about 15% of the total supply. He also notes that ETFs currently hold less than 1% of XRP in circulation, prompting questions about their capacity to incite major price fluctuations.
Mixed Sentiment Bouying Broader Market Trends
The broader crypto sentiment remains somewhat uncertain as the markets navigate early 2026. XRP’s trading value sits around $2.03, while Bitcoin struggles to maintain its position above $90,000. Despite the fear-driven sentiment, historical data from CoinGecko suggests that profound emotions often serve as precursors to substantial market rallies.
Conventional financial markets have also shown moderate gains, with the S&P 500 closing at 6,858.47 and the Dow Jones advancing by 319 points. The Nasdaq concluded mixed but later rallied due to strength exhibited in the semiconductor sector.
In an intriguing development, Tether has added 8,888.88 BTC to its reserves, amounting to an impressive $780 million. Overall, XRP’s elevation above BNB signifies another pivotal milestone for the token, keeping investor interest piqued as the market unfolds further.
