XRP News Today: XRP Market Cap Surges 600% Despite Weak On-Chain Metrics

Generated by AI AgentCoin World
Tuesday, Aug 12, 2025 11:55 am ET1min read
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Aime RobotAime Summary

- XRP consolidates near $3.15-$3.20 as analysts debate bullish potential post-Ripple-SEC legal win.

- $190B market cap vs. $87.7M TVL raises concerns about speculative valuation over real usage metrics.

- Tokenized assets on XRPL grew 52% to $175M, but DEX volumes ($49k) and EVM sidechain activity remain weak.

- Critics highlight XRP's 363,000x fee revenue ratio vs. Ethereum's 5.6, questioning fundamental valuation basis.

- Investors urged to monitor adoption rates as $3.15-$3.20 range determines price sustainability outlook.

XRP has found itself at the center of a valuation debate as the price consolidates near the $3.15 to $3.20 range. Following a brief peak of $3.36 after Ripple’s legal victory over the SEC, the token has stabilized near $3.19 as of late July 2025 [1]. Analysts are closely watching this level, with BOSSMD suggesting that a successful retest of $3.20 could indicate a return of bullish momentum [1]. Lingrid added that buyers defending this level would be critical, as it could pave the way for a potential move toward $3.70 [1].

The valuation discussion has intensified due to the growing divergence between XRP’s market capitalization and its on-chain activity. As of August 2025, XRP’s market cap has risen to approximately $190 billion, a 600% increase since November 2024 [1]. However, the

XRP
Ledger (XRPL) has a TVL of just $87.74 million, meaning the token is trading at over 2,200 times its TVL [1]. This has led to concerns about whether the current valuation is supported by actual usage or is instead driven by speculative interest.

Key drivers behind XRP’s recent surge include the resolution of the Ripple-SEC legal dispute, which has reduced regulatory uncertainty, as well as growing institutional adoption of digital assets [1]. The integration of tokenized real-world assets (RWAs), such as U.S. Treasury debt and stablecoins, has further expanded the XRPL ecosystem. Tokenized assets on the ledger have surpassed $175 million as of August 2025, up 52% in a month [1].

Despite this, on-chain activity remains modest. DEX volumes on the XRPL were approximately $49,621 in the last 24 hours, with application fees totaling just $1,467 [1]. The EVM sidechain, intended to boost DeFi capabilities, has also seen limited traction, with a TVL of $100,818 and minimal trading activity [1]. These figures suggest that while the network is evolving, real-world usage is still in its early stages.

Critics argue that XRP’s valuation is inflated, particularly when compared to other blockchains. For example, XRP’s market cap is around 363,000 times its annualized fee revenue, a figure that contrasts sharply with Ethereum’s TVL-to-market cap ratio of approximately 5.6 [1]. This has raised questions about whether XRP’s valuation is based on fundamental metrics or speculative momentum [1].

As the debate continues, investors are being advised to monitor adoption and utilization rates on the XRP Ledger to assess the long-term sustainability of its current price levels [1]. For now, the $3.15 to $3.20 range remains a key area of focus for both bulls and bears.

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[1] XRP Valuation Debate Heats up as Price Stalls Near $3.15 (https://coinpaper.com/10476/xrp-valuation-debate-heats-up-as-price-stalls-near-3-15)

[2] XRP: Latest News, Social Media Updates and Insights (https://cryptorank.io/news/ripple)