XRP has done very well in 2025, with a market cap of about $190 billion—more than 600% higher than it was at the end of 2024. This big rise in price has led to a debate about whether XRP’s value is fair based on its network activity and fundamentals.
The Value of XRP Compared to On-Chain Activity
XRP’s on-chain metrics, on the other hand, show a big difference, even though the market cap is huge. There are about $175 million worth of tokenized assets on the XRP Ledger (XRPL). This is a big increase, but it’s still only a small part of its market value. The total value locked (TVL) of XRP is about $87.7 million, which means that its market cap is more than 2,200 times its TVL. The network also makes very little money and has very little decentralized exchange volume—about $1,467 and $49,621 in the last 24 hours, respectively. These numbers show that a lot of the rise in XRP’s price is due to speculation rather than actual use.
When compared to Ethereum, which has a market cap-to-TVL ratio closer to 5.6, this difference stands out. This shows that the market value and network utilization are more in sync. Some analysts have warned that XRP’s high ratio could lead to a price correction.
Technical Signals and Price Outlook
XRP’s quick rise, on the other hand, shows signs of losing momentum. Bearish divergence in the relative strength index (RSI) shows that buying pressure is going down, which makes it more likely that the price will drop back to $2.32 by September 2025. This level is in line with the average cost of holding XRP over the past six months and could be an important support zone during a correction. Some technical analysts, on the other hand, are still hopeful and say that prices could rise back to $10 or more in a few months if conditions turn bullish again.
XRP’s current value is based on renewed investor interest and institutional interest after the rules became clearer, but its fundamentals are behind its market cap. There is a chance of a short-term correction, but the long-term potential depends on more people using the platform, more tokenized assets being traded, and the market staying strong. When deciding whether or not to include XRP in their portfolios, investors should carefully weigh speculative factors against real-world use.
This balanced view allows for cautious optimism while also acknowledging that XRP’s current price rise is based on speculation.