XRP: Third-Largest Crypto by Market Cap— Bullish or Bearish Outlook Ahead?

XRP is currently the third biggest crypto by market capitalization, recording over $144 billion market cap. However, recent reports show that the coin’s DEX trading volume is much lower than the estimated amount. The recent report highlights the daily DEX trading volume as $44,000, which has debate over the token’s adoption. Additionally, the TVL reports for the network also remain low, increasing doubts about the growth of the XRP token. 

XRP’s Network Problem: Is the Hype Bigger Than the Utility?

Although XRP has secured its place among the top 10 cryptocurrencies, its network activity makes it different from other tokens. This is because this coin has a lower number of nodes and validators, which directly points to lower adoption. Additionally, because of this lack of XRP network utility, this crypto also has a lower number of smart contract token holdings. As such, this contrast between XRP market capitalization and network adoption has caused fears of a potential crash. As such, if its speculative value falls, there are no utility-based investors to slow the XRP price decrease.

XRP’s $144B Illusion? Shocking Utility Stats Raise Red Flags

Aylo, an on-chain researcher, reacted to this data and stressed the abnormality of this contrast between value and utility. “I think XRP is the biggest financial scam the world has ever seen. There has never been something that has produced less value that has reached this market cap ($144 billion). The XRP ledger did $44,000 in volume in the last 24 hours, according to DefiLlama,” 

Chart 1 – Provided by DefiLlama, published on Tradingview, March 22, 2025.

Based on Chart 1, further analysis of DefiLlama also shows other major areas where the XRP network is also underperforming. In March, the network’s volume was recorded to be around $1.5 million. Additionally, the Total Value Locked is approximately $80 million, which is also very low when compared to XRP market capitalization. Such contrast shows that the network utility provides basically no support for XRP value. There are also other metrics that could help us get a better understanding of this lacking network activity. 

Speculation Over Utility: Truth About XRP’s Network Activity

According to the information from the XRP website, this token’s network has 386 nodes and 96 validators. When we compare these statistics to other cryptos in the top ten list, it becomes apparent how low these figures are. For example, the number 1 cryptocurrency, Bitcoin, has almost  22,000 nodes, while the second crypto, Ethereum, records nearly half. Even the Sixth crypto in the market, Solana, presents a much higher number of nodes, with 4,700. As such, most XRP investors don’t seem to think of this currency as a utility-based investment. Rather, they only see the speculative value.

Although this low network activity is concerning, there are some good reasons for it, which are noteworthy. When we compare the XRP token utility with other big altcoins, we can see a striking difference. Ripple’s utility and industry activity goes beyond the crypto space and trading market. This company has been providing banking infrastructure and international payment systems with enhanced settlement times and lower costs. As such, this company has been noticed by a number of financial institutions all around the world.

300% Surge, but at What Cost? XRP’s Future Concerns

However, the lack of retail utility and a utility-based community of investors still presents challenges for the future of this coin. The XRP value growth has been explosive, as it saw a 300% surge in the past months. This came after the reelection of Donald Trump and also the change in the SEC’s leadership. Although such an explosive increase, the mentioned lack of utility-based support can lead to a sharp XRP price decrease.