XRP’s market cap is currently 2,200 times greater than the total value locked on the XRP Ledger (XRPL), indicating significant speculation among traders.
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XRP’s $190 billion market cap far outpaces XRPL’s on-chain activity, trading at 2,200 times its TVL.
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Bearish RSI divergence hints at a possible drop toward $2.32.
XRP’s market cap is surging, reflecting trader speculation and potential growth in the XRPL ecosystem. Learn more about its valuation and market dynamics.
| XRP Market Cap | Total Value Locked (TVL) | Market Cap to TVL Ratio |
|---|---|---|
| $190 billion | $87.74 million | 2,200x |
What is XRP’s Current Market Valuation?
XRP’s market cap has surged to approximately $190 billion, significantly outpacing its total value locked (TVL) on the XRP Ledger (XRPL), which stands at just $87.74 million. This disparity indicates a high level of speculation among traders regarding XRP’s future potential.
How Does XRP Compare to Other Cryptocurrencies?
When compared to Ethereum, which has a market cap of over $516 billion and a TVL of $92.06 billion, XRP’s valuation appears inflated. Ethereum’s market cap-to-TVL ratio is significantly lower, suggesting that XRP may be overvalued relative to its on-chain activity.
Frequently Asked Questions
What is the significance of XRP’s market cap to TVL ratio?
XRP’s market cap to TVL ratio of 2,200x indicates that traders are betting heavily on future growth, even though current on-chain activity remains low.
How does XRP’s recent price movement affect its future?
The recent price surge could lead to a correction, especially given the bearish RSI divergence, which suggests weakening buying pressure.
Key Takeaways
- XRP’s market cap is significantly inflated compared to its TVL.: This indicates high speculation among traders.
- Bearish signals suggest a potential price correction.: Analysts predict a drop to around $2.32.
- Future growth potential remains uncertain.: The current valuation relies heavily on speculative expectations.
Conclusion
XRP’s current market dynamics reveal a stark contrast between its market cap and on-chain activity. While speculation drives prices higher, the sustainability of this growth remains in question. As traders navigate these fluctuations, understanding the underlying metrics will be crucial for informed decision-making.
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XRP’s market cap has surged over 600% since November, reflecting trader optimism.
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The XRP Ledger’s total value locked is currently at $87.74 million.
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Analysts are divided on XRP’s future price trajectory amid bearish signals.
XRP’s market cap is surging, reflecting trader speculation and potential growth in the XRPL ecosystem. Learn more about its valuation and market dynamics.
XRP’s Valuation is 2,200x Higher Than Its TVL
As of Monday, XRP’s parent chain, the XRP Ledger (XRPL), has a total value locked (TVL) of $87.74 million, according to DefiLlama.
XRPL’s decentralized exchange (DEX) volumes were $49,621 in the last 24 hours, while its app fees totaled just $1,467.
Based on these metrics, XRP’s market cap is over 2,200 times its DeFi TVL and around 363,000 times its annualized fee revenue.
For XRP bulls, the current valuation reflects a confident bet on XRPL’s future growth: that settlement volumes, stablecoin growth, corporate treasury allocations, and ETF inflows will expand sharply.
In their view, these drivers will justify today’s price levels, even if on-chain usage remains comparatively modest for now.
XRPL hosts $175.9 million in tokenized assets, up 52.25% in a month, led by US Treasury debt ($120.6 million), public equities ($55.4 million), real estate ($4.3 million), and stablecoins ($67.3 million), according to data from RWA.xyz.
This rapid growth ranks among the fastest in the Real World Asset (RWA) tokenization sector, hinting at expanding use cases that could boost future XRP demand.
XRP is admittedly far behind the leading layer-1 blockchain, Ethereum.
As of Monday, Ethereum’s market cap was over $516 billion, with a $92.06 billion TVL, and generating $10.48 million in daily app fees. It also tops the RWA leaderboard with $7 billion in projects under management.
That brings Ethereum’s market cap-to-TVL ratio to 5.6, and its market cap-to-annualized-fee ratio to 135, far lower than XRPL’s.
Yet, XRP trades at nearly 40% of Ethereum’s market cap, prompting some analysts to call it “way overvalued.”
XRP Bearish Divergence Hints at 25% Correction
From a technical standpoint, XRP’s recent rally shows signs of slowing momentum.
A growing bearish divergence between its price and the relative strength index (RSI) suggests that buying pressure is weakening even as prices push higher, a setup that has historically preceded corrections.
XRP could face an initial pullback toward its 20-2W exponential moving average (20-2W EMA; purple wave) near $2.32 by September, down over 25% from current prices.
A similar decline occurred following the bearish divergence signals in the 2017–2018 cycle.
The $2.32 level is further notable because it is close to XRP’s realized price over the past six months, essentially the average cost basis at which existing holders acquired their tokens during that period.
XRP’s realized prices could act as magnets if momentum fades, with a retest likely flushing out weaker hands before any rebound.
Some technical analysts are nevertheless confident about XRP price rising to as high as $10 in the coming months.
