The XRP coin has seen a strong surge in its market value, rising by more than 600% since November to about $190 billion, supported by hopes for the settlement of the Ripple case, increasing regulatory clarity in the United States, in addition to the momentum of exchange-traded funds (ETFs).
Despite this remarkable rise, questions arise about the alignment of the current valuation with fundamentals, especially since the market value far exceeds the total value locked (TVL) on the XRPL network, which amounted to only $87.74 million, according to DefiLlama data. The trading volume on the decentralized exchange over the last 24 hours was about $49,621, while application fees amounted to only $1,467. This means that the market value is more than 2,200 times the locked value, and about 363,000 times the annual revenue from fees.
Nevertheless, the XRP community remains optimistic, relying on the expansion of use cases such as increased settlement volumes, the growth of stablecoins, corporate investments, and ETF fund flows. The XRPL network also hosts tokenized assets worth $175.9 million, a 52% increase over the month, including U.S. Treasury bonds, public stocks, real estate, and stablecoins, making it one of the fastest-growing in the global tokenized asset (RWA) sector.
However, in comparison, Ethereum remains clearly superior, with a market value exceeding $516 billion, a locked value surpassing $92 billion, and daily revenue from fees exceeding $10.48 million, making its valuation ratios more balanced than XRP.
Technically, signs of a slowdown in XRP momentum appear, with increasing divergences between the price and the relative strength index (RSI), which may herald a potential correction towards the $2.32 level by September, a decline of over 25% from current prices. This level is close to the average purchase price of holders over the past six months.
Despite these risks, some analysts still expect the price to reach $10 in the coming months. However, it remains essential to emphasize the need for personal research and analysis before making any investment decisions, given the high risks in the cryptocurrency market.