XRP has shed nearly 10% of its value over the last two weeks, yet on-chain metrics suggest the token may still be overvalued by the market, according to a new analysis. The broader crypto market has turned bearish in the second quarter, with large-cap assets absorbing the brunt of selling pressure.
In a CryptoQuant Quicktake post, analyst CryptoOnchain flagged a 20% surge in XRP's Network Value to Transactions (NVT) ratio over a single week. The NVT ratio compares market capitalization to daily on-chain transaction volume, and a sharp rise indicates that the asset's valuation is outpacing its fundamental network utility — a classic sign of overvaluation.
While the analysis points to a looming repricing, it does not offer a specific price target or timeline. The divergence between market cap and transaction volume suggests that XRP's current price may not be supported by actual usage, raising the risk of a correction even as the token already trades near recent lows.
XRP's market cap remains a significant component of the broader crypto sector, though its recent underperformance aligns with a decline in speculative interest across altcoins. The token's correlation with Bitcoin and Ethereum has also weakened during this period, leaving it more exposed to idiosyncratic risks.
Community reactions have been mixed, with some traders dismissing the NVT metric as a lagging indicator, while others see it as a warning to reduce exposure. Competing protocols like Stellar (XLM) have shown comparatively stable on-chain activity, drawing attention from investors seeking utility-driven alternatives.