XRP News Today: XRP Surges 600% on Legal Progress and ETF Hype but Faces Valuation Concerns

XRP has surged over 600% since November, reaching a market capitalization of approximately $190 billion, driven by ongoing assessments of Ripple’s lawsuit settlement, regulatory developments in the U.S., and growing interest in ETFs [1]. However, the question of whether XRP is “way overvalued” has gained traction as its price outpaces onchain fundamentals. As of the latest data, the XRP Ledger (XRPL) has a total value locked (TVL) of $87.74 million, with daily decentralized exchange (DEX) volumes at $49,621 and app fees totaling just $1,467 [1]. This implies that XRP’s market cap is over 2,200 times its TVL and roughly 363,000 times its annualized fee revenue, raising concerns about a potential disconnect between valuation and usage [1].

Proponents argue that the current valuation reflects optimism around XRPL’s future growth, particularly in settlement volumes, stablecoin expansion, corporate treasury allocations, and ETF inflows [1]. In support of this view, XRPL hosts $175.9 million in tokenized real-world assets (RWAs), including U.S. Treasury debt, public equities, real estate, and stablecoins, with a 52.25% rise in a month [1]. This growth ranks among the fastest in the RWA tokenization sector, signaling expanding use cases that could increase XRP demand [1].

Nevertheless, XRP still lags behind Ethereum, the leading layer-1 blockchain. Ethereum’s market cap exceeds $516 billion, with a TVL of $92.06 billion and daily app fees of $10.48 million. Meanwhile, Ethereum’s market cap-to-TVL ratio is 5.6, and its market cap-to-annualized-fee ratio is 135, both significantly lower than XRPL’s [1]. Given XRP’s market cap is nearly 40% of Ethereum’s, some analysts argue it is “way overvalued” [1].

From a technical perspective, XRP’s recent rally shows signs of bearish momentum. A growing divergence between its price and the relative strength index (RSI) suggests weakening buying pressure, which historically has preceded price corrections [1]. Some technical analysts predict a potential 25% pullback to $2.32 by September, aligning with the 20-2W exponential moving average and the average cost basis of XRP holders over the past six months [1]. A similar correction occurred during the 2017–2018 cycle after bearish divergence signals [1].

Despite these concerns, a minority of analysts remain bullish, forecasting that XRP could rise to $10 in the coming months [1]. This article does not offer investment advice. As always, investors are encouraged to conduct thorough research before making decisions [1].

Source: [1] Is XRP ‘way overvalued’ to buy right now? (https://cointelegraph.com/news/is-xrp-way-overvalued-to-buy-right-now)