XRP continues to be a hot topic for investors after the digital asset maintained its high market cap despite what appears to be moderate activity on its network.
This raises the question of whether the current price is truly supported by actual usage or just hopes for future growth.
Currently, XRP is trading around $1.06 to $1.12 with a market cap approaching $70 billion.
However, data from DeFiLlama shows that daily trading volume on the XRP Ledger is only around $2.87 million, while transaction fees collected only reach $378.
The large gap between market cap and network activity has led some analysts to believe that XRP’s valuation may be too high.
However, developments on Ripple’s part are increasingly positive.
After a legal dispute with the United States Securities and Exchange Commission (SEC) is almost over, the company continues to expand its business with the $1.25 billion acquisition of Hidden Road, in addition to strengthening the digital payments ecosystem through the RLUSD stablecoin.
Ripple also secured a MiCA license in Luxembourg, allowing it to offer digital asset services across the European Economic Area (EEA).
However, analysts caution that Ripple’s success does not necessarily translate into increased demand for XRP.
Services such as digital payments, stablecoins and asset storage can continue to grow without requiring widespread use of XRP.
In fact, the use of RLUSD for dollar-based transactions could potentially reduce reliance on XRP in some transactions.
At the same time, the emergence of the Spot XRP ETF in the United States has also helped to increase institutional investor interest.
The fund has reportedly attracted inflows of over $1.5 billion, with nearly a billion XRP now held by the ETF.
However, the purchases via the ETF only reflect investor interest and not an increase in XRP usage in actual transactions on the XRP Ledger network.
