XRP Valuation Debate Heats up as Price Stalls Near $3.15

Key Points

1. XRP is currently trading at $3.19, testing short-term support, with analysts noting the importance of holding the $3.20 level for potential upward movement to $3.70.

2. XRP's market capitalization has surged to approximately $190 billion, a 600% increase since November 2024, but its on-chain activity remains low with a TVL of just $87.74 million.

3. The XRP Ledger (XRPL) hosts over $175 million in tokenized assets, a 52% monthly increase, but its DEX volumes and application fees remain modest, raising questions about the sustainability of its valuation.

4. Analysts highlight the resolution of the Ripple-SEC legal dispute and the introduction of tokenized real-world assets on XRPL as key factors driving XRP's market cap growth.

5. The disparity between XRP's market cap and on-chain activity is significant, with its market cap being 2,200 times its TVL and 363,000 times its annualized application fees, prompting concerns about valuation justification.