$XRP's Fundamentals Show Resilience Amid Price Decline

The Network Value to Transaction (NVT) ratio is a widely used tool for assessing crypto valuations. It compares a network's total value to the volume of transactions taking place on it, similar to the Price-to-Earnings (P/E) ratio in traditional markets.

XRP's NVT ratio has cooled down from its 2025 highs, indicating that the current price has better support from real transaction activity. This suggests that the market has moved away from speculative trading and toward more solid fundamentals.

Transaction data confirms this trend, with daily transactions increasing in 2026 compared to 2025. In fact, daily transactions have never fallen below 1.7 million since the start of 2026, indicating strong network activity even at lower prices.

The growth of institutional demand is also contributing to XRP's improved fundamentals. Spot $XRP ETFs have seen over $1 billion in inflows, adding more stable and meaningful transaction volume that helps keep the NVT ratio from rising too high.