XRP's NVT Ratio Suggests Stronger Fundamentals at $1.37 Than 2025 Highs

XRP has seen a sharp price drop this year, but NVT data suggests the asset is now in a stronger position than when it traded at higher levels last year.

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While XRP has declined 51.7% since October 2025, an analysis from CryptoQuant author YJ shows that the current price has better support from real network activity, indicating that the XRP market may have moved away from speculative trading toward more stable fundamentals.

• XRP has dropped 51.7% since Q4 2025, yet current data shows it is fundamentally stronger than when it traded near $3.6 in 2025.
• The NVT ratio, now at 170.2, has cooled from 2025 highs, showing the current price has better support from real transaction activity.
• In 2025, daily transactions ranged between 1.1 million and 2.2 million, but in 2026 they increased to 1.79 million-3 million.
• Transaction activity in 2026 has remained consistently strong, never falling below 1.7 million.
• Institutional demand has grown, with about $1 billion flowing into spot XRP ETFs.

While XRP has declined to $1.37, YJ pointed out in his recent market exposition that today’s price aligns better with actual network activity.

In 2025, XRP reached much higher levels, including $3.6 in July 2025, but those prices were not as strongly supported by real usage.

Now, even at a lower price, the data shows stronger participation across the network, suggesting the market has moved away from speculation and toward more solid fundamentals.

To explain this, YJ called attention to the Network Value to Transaction (NVT) ratio, a common tool used to assess crypto valuations.

For context, the NVT ratio compares a network’s total value to the volume of transactions taking place on it. It works in a similar way to the Price-to-Earnings (P/E) ratio used in traditional markets, which shows how much investors are paying compared to a company’s earnings.

A high NVT ratio usually means the market value is rising faster than actual usage, which can indicate overvaluation or hype.On the other hand, a low NVT ratio suggests strong network activity compared to price, which can signal that the asset is fairly valued or even undervalued.

YJ noted that XRP’s valuation cooled down from late 2025 into early 2026. During 2025, the NVT ratio saw large spikes, showing that prices had moved ahead of real activity. Over time, these spikes eased, and the metric became more stable.

Right now, the NVT stands at 170.2, which sits within a neutral-to-low range compared to the higher levels seen in 2025. This shows that the current $1.37 price has stronger support from real transaction volume than before.

YJ also noted that in April 2026, the NVT line has been moving in tighter patterns, which shows volatility compression. This often comes before a bigger price move. Even though the price has stayed within a narrow range, the steady network activity suggests the foundation remains strong.

Transaction data confirms why the NVT is in a better position today. In 2025, when XRP traded mostly between $2 and $3, daily transactions ranged from 1.1 million to 2.2 million, with only a few spikes up to 2.6 million. Notably, daily transactions never went above 2.8 million between February and December 2025.

Now, despite the lower price between $1.3 and $1.4, activity has increased. Specifically, daily transactions range from 1.79 million to 3 million, with some spikes above 4.4 million. In one case last month, transactions reached 5.17 million, the highest level in two years.

Throughout 2026, activity has stayed strong, never dropping below 1.7 million, with the lowest point being 1.74 million on Jan. 1, 2026. This shows that more users are engaging with the network even as the price remains lower, improving the NVT ratio.

YJ also called attention to developments surrounding growing institutional interest. He noted that spot XRP ETFs have now witnessed over $1 billion in inflows. This adds more stable and meaningful transaction volume, which helps keep the NVT ratio from rising too high.