The XRP community is worried about the network’s utility due to extremely low DEX trading volumes and TVL. Despite a market cap of $137 billion, yesterday’s daily DEX trading volume was only $44,000, raising questions about adoption.
Compared to leading blockchain networks, the XRP ledger has a lack of nodes, validators, and smart contract token holdings, highlighting a misalignment between its market valuation and practical usability.
XRP Ledger Reflects Massive Issues
Since Donald Trump’s re-election in November 2024, XRP has gained traction as a trending crypto asset. With the SEC’s pro-crypto regulatory shift, XRP’s value has surged nearly 300% over the past four months, making it the 4th largest asset in the market.
The SEC’s dismissal of its long-standing lawsuit against Ripple has fostered optimism for reaching all-time highs. Yet, the XRP Ledger shows minimal improvement in trading activity.
> “I think XRP is the biggest financial scam the world has ever seen. There has never been something which has produced less value that has reached this market cap ($140 billion). The XRP ledger did $44,000 in volume in the last 24 hours, according to DefiLlama,” said on-chain researcher Aylo.
DefiLlama’s data indicates the issue, showing the network’s volume in March at a mere $1.5 million and a TVL of $80 million, suggesting negligible utility relative to its size.
XRP DEX Volume and TVL. Source: DefiLlama
This volume and TVL data shed light on XRP’s state, revealing an additional concern: it has only 386 nodes and 96 validators, markedly fewer than Bitcoin’s nearly 22,000, Ethereum’s 11,000, and Solana’s 4,700.
Generally, crypto traders appear disinterested in the network’s utility, indicating XRP is largely viewed as a speculative asset.
A Global Map of All Active Nodes on the XRP Ledger. Source: Livenet
Nonetheless, it’s essential to consider a counter perspective. While XRPL DEX volume is low, Ripple is becoming a key infrastructure provider for global banking institutions. Its technology enhances cross-border payment efficiency by reducing settlement times and costs, attracting major banks and financial service providers.
Thus, XRP’s value proposition is not limited to crypto trading. It plays a strategic role in modernizing global financial transactions and bridging traditional finance with digital payments, explaining why XRPL’s low trading volume doesn’t align with its high valuation.
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