XRP’s market capitalization has surged to $190 billion, dramatically outpacing its on-chain utility metrics and signaling heightened speculative trading. The XRP Ledger (XRPL) currently holds a total value locked (TVL) of $87.74 million, resulting in a market cap-to-TVL ratio of 2,200x.
This valuation significantly exceeds Ethereum’s market cap-to-TVL ratio of 5.6, suggesting potential overvaluation relative to actual blockchain usage. On-chain activity remains notably low, with XRPL’s decentralized exchange recording just $49,621 in 24-hour trading volume and generating $1,467 in application fees.
Technical indicators point toward a potential correction, as a bearish RSI divergence indicates weakening buying pressure. Analysts project a possible 25% price decline to $2.32 based on current market signals.
Amid these concerns, XRPL’s tokenized asset sector shows robust growth, with $175.9 million in hosted assets representing a 52.25% monthly increase. This expansion is primarily driven by tokenized US Treasury debt, public equities, real estate, and stablecoins.