Is XRP ‘way overvalued’ to buy right now?

Key Points

1. XRP's $190 billion market cap is 2,200 times its total value locked (TVL) of $87.74 million on the XRP Ledger (XRPL).

2. XRPL's decentralized exchange volumes were $49,621 in the last 24 hours, with app fees totaling just $1,467, making XRP's market cap 363,000 times its annualized fee revenue.

3. XRP's valuation reflects bullish expectations for future growth in settlement volumes, stablecoins, corporate treasury allocations, and ETF inflows.

4. XRPL hosts $175.9 million in tokenized assets, including US Treasury debt, public equities, real estate, and stablecoins, showing rapid growth in Real World Asset (RWA) adoption.

5. Ethereum's market cap-to-TVL ratio is 5.6, and its market cap-to-annualized-fee ratio is 135, significantly lower than XRPL's, leading some analysts to call XRP 'way overvalued'.

6. Technical analysis indicates a bearish divergence in XRP's RSI, suggesting a potential 25% correction to $2.32 by September.