XRP has fallen nearly 10% over the past two weeks as broader crypto markets weakened in the second quarter. Despite the decline, fresh on-chain readings suggest the token may be trading above its underlying network activity and could be vulnerable to repricing, according to analysis published on CryptoQuant.
NVT ratio points to potential overvaluation
In a Quicktake post on CryptoQuant, market analyst CryptoOnchain said XRP appears to have entered “overvalued” territory as its Network Value to Transactions (NVT) ratio climbed 20.3% over the past week relative to its three-month baseline. The NVT ratio compares a network’s market value (market capitalization) to the daily value transferred on-chain, offering a lens into whether price is aligned with transactional usage.
The analyst noted that this structural rise in NVT has occurred while XRP’s price attempts to consolidate near the $1.33 level. Typically, a rising NVT suggests the market is valuing the asset more richly than the value being transacted on its network, indicating a growing divergence between valuation and fundamental utility.
Spot market participation has thinned
Complementing the NVT shift, spot activity on major exchanges appears subdued. CryptoQuant data show Binance inflows and outflows for XRP have each dropped by roughly 98% compared with their three-month averages. Active deposit addresses on Binance have also fallen by about 94% over the same period.
According to CryptoOnchain, the combination of a rising NVT ratio and declining spot participation indicates limited fundamental support from active investors or network usage, placing XRP in a risky setup if the market seeks fair value.
Price snapshot
As of publication, XRP is trading around $1.32 with little change over the past 24 hours. Large-cap cryptocurrencies have broadly come under pressure in recent weeks, and on-chain signals suggest XRP may face additional volatility if network activity does not improve. On-chain indicators are not definitive forecasts but are often used by traders to gauge valuation conditions and potential inflection points.