Is the market sleeping on XRP? Unpacking the underpricing puzzle.
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XRP’s fundamentals are firing on all cylinders, yet price action remains subdued.
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On-chain data strengthens the undervaluation case.
Ripple [XRP] has been the talk of the town lately, yet the market appears to have missed the memo. Despite a convergence of bullish macro and micro factors, FOMO remains conspicuously absent. It’s almost as if all the key catalysts are in play, but the market’s reaction has yet to follow through.
Decoding the Ripple paradox
XRP closed April with an impressive 11% monthly return, but this wasn’t solely attributed to a “market-wide” alleviation of FUD. Institutional players were actively accumulating, with over 900 million XRP added to their treasuries in just the past month alone.
On top of that, Ripple hit two major ETF milestones: A spot XRP ETF debut in Brazil and a Futures XRP listing on Wall Street. Institutional interest? Check. And just when you thought the news cycle was cooling off, Ripple’s native stablecoin, RLUSD, got the official nod from the U.S. Department of the Treasury. That puts it shoulder to shoulder with stablecoin heavyweights like USDC and USDT, marking a serious step forward in real-world utility.
Yet strangely, broader market excitement is still hitting the snooze button.
Is the market undervaluing XRP’s potential?
If you’re wondering why XRP still feels undervalued despite all the bullish buzz, the on-chain data might have the answer. For starters, new address creation on the XRP Ledger has dropped off a cliff since December even though price action has climbed right back to the same levels. Translation? Retail interest isn’t exactly flooding in.
It gets even more telling: Daily active addresses have fallen 46% year-to-date, now sitting at just 21,282. That’s a pretty clear sign this rally is running more on seasoned hands than fresh faces.
And remember those massive Binance outflows that topped 1 billion XRP five months ago? They’ve dwindled to just 108 million, even lower than pre-election levels.
Source: CryptoQuant
In short, the cooling activity suggests investors are in a “wait-and-see” mode, despite the growing list of bullish catalysts. Meanwhile, the speculation mill keeps spinning, with bold calls for XRP to reclaim the $3 mark in the near term. But with FOMO nowhere in sight, the current vibe feels more like a slow burn than a breakout rally. It’s a classic crypto paradox: All the ingredients for a bull run are there, yet the crowd’s still not biting.
Conclusion
In summary, while XRP is firing on multiple fronts with institutional support and new products, the market’s hesitance signals a cautious investor sentiment. The potential for growth remains, yet the current dynamics suggest a need for patience among traders. Investors should continue to monitor on-chain activity and market reactions closely as conditions evolve.
