Concerns Rise Over XRP’s Network Utility Amid Low DEX Trading Volume and Validator Count

• XRP’s low daily DEX trade volume of $44,000 and $80 million in total value locked (TVL) raise concerns about its network utility despite a $137 billion market cap.

• XRP lags behind competitors like Bitcoin and Ethereum, with only 386 nodes and 96 validators compared to thousands for others in the space.

• XRP’s market presence is mostly driven by speculation, with little real utility, leading to a growing concern about its future stability.

The XRP community is increasingly apprehensive about the network’s utility, as evidenced by its low DEX trading volumes and total value locked compared to its significant market cap.

XRP Ledger Reflects Massive Issues

Since Donald Trump’s re-election in November 2024, XRP has become one of the most trending crypto assets in the market. Under the SEC’s pro-crypto regulatory shift, XRP has surged nearly 300% in the past four months, becoming the 4th largest asset in the market.

Most notably, the SEC dropped its long-running lawsuit against Ripple, sparking hope that the token could reach an all-time high. Despite these positive developments, the XRP Ledger has shown little to no improvement in trading activity.

“I think XRP is the biggest financial scam the world has ever seen. There has never been something which has produced less value that has reached this market cap ($140 billion). The XRP ledger did $44,000 in volume in the last 24 hours, according to DefiLlama,” said on-chain researcher Aylo on X.

One look at DefiLlama’s data reveals the problem. So far, the network’s volume in March was a measly $1.5 million, and its TVL is $80 million. In other words, there’s practically zero utility for its size.

This trade volume and TVL data is an important window into the state of XRP, but there are other vital clues. For example, according to its own website, XRP currently has 386 nodes and 96 validators.

Compare this to other leading assets, Bitcoin has nearly 22,000 nodes, Ethereum has 11,000, and Solana has 4,700.

In other words, general crypto traders don’t seem to be interested in the network’s utility. It’s a concerning indication that the majority of the community considers XRP primarily as a speculative asset.

However, there is a counter perspective that the XRP community needs to consider. While XRPL DEX volume remains modest, Ripple continues to establish itself as a key infrastructure provider for global banking institutions.

Ripple’s technology streamlines cross-border payments by reducing settlement times and lowering costs, attracting leading banks and financial service providers worldwide. This strong institutional focus drives interest in XRP, as it supports efficient liquidity management.

In this context, XRP’s value proposition extends beyond conventional crypto trading. It plays a larger strategic role in modernizing global financial transactions and bridging traditional finance with emerging digital payment solutions.

So, XRPL’s low trading volume is concerning, but there is a logical reason why it doesn’t entirely align with the altcoin’s premium valuation.

Conclusion

The current state of the XRP Ledger raises significant questions regarding the asset’s utility and future. Despite its hefty market cap, the minimal trading activity suggests a disparity between market perception and actual usability. As Ripple navigates its role in global banking, the community must address these challenges to sustain its relevance moving forward.