XRP Is Currently the Third Biggest Crypto by Market Capitalization

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

Recently, there has been a discussion regarding the disparity between XRP's market capitalization and its network activity. According to recent reports, the daily DEX trading volume for XRP is $44,000, which is a relatively low volume when compared to the token's market cap of over $144 billion.

According to DefiLlama, the TVL for XRP is also low, coming in at $80 million. In March, the network's volume was around $1.5 million.

According to on-chain researcher Aylo, who reacted to this data, such a contrast between value and utility is abnormal.

"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," said Aylo.

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 instance, 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.

According to the company's website, 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.

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.

According to Shapeshift's CEO, such an explosive increase, mentioned lack of utility-based support can lead to a sharp XRP price decrease.