Is XRP Priced Too High for What It Actually Delivers?

XRP (CRYPTO: XRP) has a stronger story than it did a few years ago. But investors still need to ask whether the token is priced for what it delivers today or for adoption that has not yet clearly shown up on the XRP Ledger (XRPL), the blockchain network that processes and records XRP transactions.

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XRP has recently been trading in the range of $1.06 to $1.12, giving it a market value of roughly $70 billion. But DeFiLlama recently showed that only $2.87 million of trading occurred on the XRP Ledger over 24 hours, while users paid just $378 in transaction fees. So, although the XRP Ledger is processing transactions, the amount of trading and fees on the network does not yet clearly justify XRP's high market value.

XRP needs more than Ripple's progress

In 2020, the U.S. Securities and Exchange Commission (SEC) sued Ripple, the company backing XRP, arguing that $1.3 billion in XRP was sold as unregistered securities. The uncertainty weighed on XRP because investors and trading platforms did not know whether U.S. regulators would treat ordinary XRP trading as securities activity. The case is now effectively over, with Ripple paying a $125 million fine, though the court still limits some XRP sales made directly to big institutions.

Ripple is also building its ecosystem around XRP. The company has acquired Hidden Road for $1.25 billion, gaining a platform that clears about $3 trillion annually for more than 300 institutional clients.

Ripple USD (CRYPTO: RLUSD), a crypto token pegged to $1, had about $1.58 billion in circulation and $1.68 billion in reserve funds as of June 25. RLUSD strengthens Ripple's payments story because a stablecoin is easier to use for dollar payments than a volatile asset like XRP.

But this is where XRP investors need to be careful. Ripple can build payments, stablecoins, custody, and trading services without all that value flowing to XRP. Additionally, if customers can move dollars with RLUSD, it may limit the extent to which Ripple's growth creates extra demand for XRP itself.

Investors are paying for future demand

Europe is another positive. Ripple received full MiCA authorization in Luxembourg on July 6, allowing it to offer regulated crypto services across the European Economic Area. It is easier for Ripple to sell payment and crypto services to European financial firms. But XRP investors still need to see whether that expanded market access translates into greater actual use of XRP.

Exchange-traded funds (ETFs) let investors buy exposure to an asset through a regular brokerage account instead of buying the asset directly. XRP is already benefiting from that easier access. According to Ripple, U.S. spot XRP ETFs crossed $1.5 billion in cumulative inflows by early March 2026 and held more than 769 million XRP in custody. XRP Insights' tracker showed about 971 million XRP held by U.S. spot XRP ETFs as of early July 2026.

But ETF demand is again not the same as real use of XRP for payments or trading on the XRP Ledger. The Wall Street Journal(https://www.wsj.com/finance/investing/crypto-etfs-boom-downside-8e2535a7) has warned that many newer crypto ETFs are struggling to attract sufficient assets.

Ripple is taking real actions in payments, stablecoins, Europe, and institutional finance. But based on the activity visible on the XRP Ledger today, XRP does look priced for a lot of success that still has to be proven.

Manali Pradhan, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends XRP. The Motley Fool has a disclosure policy.