Crypto analyst Versan Aljarrah believes “the current price of XRP doesn’t reflect its utility, its adoption, or its strategic position.” He argues the token’s true value is being held down by what he calls “layered, coordinated” suppression mechanisms inside exchanges, regulations, and liquidity infrastructure. In his view, without those barriers, XRP’s price (XRP-USD) would be much higher because its real-world adoption and strategic role aren’t being reflected in the current ~$3.30 price, even after a 600% surge since November. This argument has resonated with some XRP supporters who see the token as deeply undervalued in relation to its potential.
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XRP’s Rally Meets Weak On-Chain Metrics
Others in the market take a very different view. While XRP has surged in recent months, lifting its market cap to about $190 billion on optimism around the Ripple lawsuit settlement, regulatory clarity, and ETF interest, the on-chain data paints a more restrained picture. The XRP Ledger holds just $87.7 million in total value locked, making the market cap more than 2,200 times higher than on-chain activity. Annualized fees are so low that the market cap-to-fee ratio is roughly 363,000, far higher than Ethereum’s, which some see as a sign that XRP’s current price is running ahead of its actual usage.
Analysts Warn Valuation May Not Hold
Skeptics point to other metrics as well. On-chain data shows XRP’s Network Value to Transaction ratio near 477, which often signals overvaluation compared with real activity. Its MVRV ratio is over 400%, meaning most holders are sitting on large unrealized gains that could be vulnerable if sentiment turns.
Arca CIO Jeff Dorman calls XRP “insanely overvalued,” comparing it to GameStop’s (GME) hype-driven rally. “It’s like a really expensive call option on what it could be in the future,” he said, framing the price as driven more by community belief than by fundamentals.
Real-World Asset Tokenization Offers a Middle Ground
There are, however, some developments that could eventually bridge the gap between valuation and usage. The XRP Ledger’s real-world asset tokenization has risen more than 50% in the past month to about $176 million, led by U.S. Treasuries, public equities, real estate, and stablecoins. This growth supports Aljarrah’s view that adoption is expanding behind the scenes, though the scale still lags far behind networks like Ethereum.
Technical Signals Suggest Short-Term Risks
From a charting perspective, the picture is mixed. A gap between XRP’s price and its RSI shows that buying momentum is slowing. In the past, this pattern has often led to price drops. If it happens again, XRP could fall to around $2.30–$2.40, roughly 25% lower than today. Supporters would likely see that as a chance to buy more of a token they think is being held down, while skeptics warn that the price is already too high for comfort.
At the time of writing, XRP is sitting at $3.2072.
