Ripple's Progress Fails to Justify XRP's Sky-High Market Value

XRP's market value has reached roughly $70 billion, but its actual usage on the XRP Ledger is much lower. According to DeFiLlama, only $2.87 million of trading occurred on the XRP Ledger over 24 hours, with users paying just $378 in transaction fees.

Ripple, the company behind XRP, has made progress in expanding its presence in payments, stablecoins, and Europe. However, this growth may not necessarily translate into increased demand for XRP itself.

The U.S. Securities and Exchange Commission (SEC) settled a case with Ripple in 2020, which weighed on XRP's value due to uncertainty over whether XRP trading would be considered securities activity. Although the case is now resolved, the court still limits some XRP sales made directly to big institutions.

Ripple has acquired Hidden Road for $1.25 billion, gaining a platform that clears about $3 trillion annually for more than 300 institutional clients. The company also introduced Ripple USD (RLUSD), a stablecoin pegged to $1, which had about $1.58 billion in circulation and $1.68 billion in reserve funds as of June 25.