XRP Ledger (XRPL) decentralized exchange (DEX) activity has surged to a 13-month high, with recent data showing network transactions climbing roughly 40% to reach approximately 2.5 million daily transactions. This spike in on-chain activity coincides with significant legislative developments, as an Arizona committee advanced a digital reserve bill in a 4-2 vote that names XRP alongside Bitcoin and DigiByte as potential assets for state treasury holdings.
Despite the increased activity and political tailwinds, a critical analysis of XRP's fundamentals presents a contrasting picture. Total value locked (TVL) on the XRPL remains structurally small compared to dominant Layer 1 ecosystems, and the fee revenue generated by the network is described as "negligible." This indicates limited on-chain value capture. Analysts argue that while short-term activity spikes and social momentum can drive volatility, they do not automatically translate into durable economic gravity or structural value creation.
Market data shows XRP trading near $1.37, up 2.14% after bouncing from multi-month lows, yet the price remains trapped below all major Exponential Moving Averages (EMAs). Derivatives markets show a slight 0.75% rise in open interest to $2.28 billion, with long/short ratios favoring bulls at 2.38. However, the core critique persists: for XRP to justify a valuation as global financial infrastructure, measurable fundamentals like sustained fee generation, deepening liquidity, and institutional-grade settlement volumes need to materially scale, metrics which currently do not demonstrate "compounding economic dominance." Skepticism is further fueled by concerns over wallet concentration despite the transaction surge.
