Top 3 Reasons Why XRP Price Is Surging Today

The XRP price is back in the spotlight today, becoming one of the top gainers of the day. In line with the broader crypto market rally, Ripple’s native token has posted significant gains, sparking widespread optimism.

After weeks of ups and downs, the cryptocurrency has regained momentum, driven by a combination of factors. These include growing ETF inflows, rising on-chain activity, and increasing optimism around regulatory clarity in the US.

XRP Price Is on the Surge: Here’s Why

Currently, the XRP price is experiencing a bullish reversal, invoking a fresh wave of optimism. Trading at $21.4 at press time, the altcoin is up by a notable 4.5% in a day. Meanwhile, it boasts a year-to-date (YTD) of almost 15%, making it one of the best-performing crypto assets to start the year. 

XRP, with a market cap of $130.4 billion, remains in 4th place on CoinMarketCap, thus fortifying its status as one of the best. The market is now questioning the factors that cause this bull run and whether it can last.

The current XRP price surge is a result of the overall crypto market trend as well as Bitcoin’s upward movement. The cryptocurrency market has increased to $3.25 trillion, which is a considerable rise of 3.85%. Major cryptocurrencies such as Bitcoin, Ethereum, Solana, and others are also on the rise, changing the earlier negative signs to positive ones. The XRP price is also benefiting from this general positive trend.

There are also other major factors driving the surge in the XRP price today. The key reasons include ETF inflows, rising on-chain activity, and hopes for regulatory clarity with the upcoming CLARITY Act markup. 

ETF Inflows Surge

One of the main reasons behind the XRP price surge today is the growing institutional interest in ETFs. According to SoSoValue data, US-listed spot XRP ETFs recorded a combined net inflow of $12.98 million on January 13. This marks the fourth consecutive day of positive flows. These funds have recorded only outflow day since they launched in November last year. 

The Grayscale XRP ETF was the one that brought in the biggest share of inflows with $7.8 million. This has pushed its total inflows to a staggering $273 million. In the second position is the Canary XRP ETH (XRPC), which has reported daily inflows of $2.73 million and $398 million in net inflows.

On-Chain Activity Remains Promising

Another important reason for today’s XRP price increase is the growing on-chain activity. The latest statistics indicate a considerable rise in transaction volume and the number of active wallet addresses. In the last 24 hours alone, the altcoin has experienced an incredible transaction volume of $4.63 billion, which is equivalent to a 71% increase. More than 1000 accounts were created in a day. This indicates that both retail and instructional participants are becoming more active on the XRP Ledger.

Regulatory Clarity on the Horizon

Interestingly, the growing speculations surrounding the market structure bill have significantly influenced the XRP price. As the Senate has scheduled the CLARITY Act markup hearing on January 27, 2026, the crypto bill is nearing its final passage. With President Donald Trump signing the bill into law, the US crypto space is expected to see a major transformation, which indeed is a bullish catalyst for the XRP token price surge.

In essence, the Ripple token’s current uptrend is unlikely to be a short-term catalyst. As driven by major forces like increased interest and regulatory developments, the token is expected to show a sustained positive rally.