XRP is currently trading at $3.19, testing short-term support levels. Market analysis indicates potential growth interest in the asset.
Overview of Current XRP Position
Currently, XRP is trading at a price of $3.19, having recently tested short-term support levels. Market analyst BOSSMD notes that XRP exhibits heightened bullish momentum to reclaim the $3.20 region.
Crypto analyst Lingrid emphasizes the importance of holding the $3.20 level, as successfully defending it makes a run toward $3.70 more likely.
XRP Valuation Surge and Sustainability Questions
XRP's market capitalization has surged to approximately $190 billion, reflecting a remarkable 600% increase since November 2024. Despite this impressive growth, on-chain activity data from XRP Ledger (XRPL) shows a significant disparity, with a total value locked (TVL) of only $87.74 million.
This ratio indicates that XRP is currently trading over 2,200 times its TVL, raising questions about the sustainability of this valuation. The valuation surge can be attributed to factors including the resolution of the Ripple-SEC legal dispute and growing institutional interest in digital assets.
Additionally, as of August 2025, XRPL hosts over $175 million in tokenized assets, marking a 52% increase in just one month. However, network activity remains relatively modest, with DEX volumes around $49,621 in the last 24 hours and total application fees of $1,467.
Conclusion and Recommendations
While XRP's recent price surge reflects growing optimism and institutional interest, the substantial gap between its market cap and on-chain activity warrants cautious consideration. Investors should closely monitor the adoption and utilization rates of XRPL to assess the sustainability of the current valuation in the long term. Key levels to watch in the short term include $3.15 and $3.20.
Despite the optimism surrounding XRP, current valuations require a cautious approach. Investors would benefit from analyzing XRPL usage dynamics.
