The XRP community is concerned about the network’s utility as its DEX trading volumes and TVL remain extremely low. Despite XRP’s impressive $137 billion market cap, the network recorded only $44,000 in daily DEX trading volume yesterday, raising questions about its overall utility and adoption.

When compared to leading blockchain networks, the XRP ledger suffers from a shortage of nodes, validators, and smart contract token holdings. This discrepancy highlights a clear misalignment between the altcoin’s market valuation and the practical usability of its blockchain network.

XRP Ledger Reflects Massive Issues

Since Donald Trump’s re-election in November 2024, XRP has become one of the most trending crypto assets in the market. Under the SEC’s pro-crypto regulatory shift, XRP has surged nearly 300% in the past four months, and become the 4th largest asset in the market.

Most notably, the SEC dropped its long-running lawsuit against Ripple, sparking hope that the token could reach an all-time high. Despite all of these positive developments, the XRP Ledger has shown little to no improvement in trading activity.

“I think XRP is the biggest financial scam the world has ever seen. There has never been something which has produced less value that has reached this market cap ($140 billion). The XRP ledger did $44,000 in volume in the last 24 hours, according to DefiLlama,” on-chain researcher Aylo claimed on X.

One look at DefiLlama’s data reveals the problem. So far, the network’s volume in March was a measly $1.5 million, and its TVL is $80 million. In other words, there’s practically zero utility for its size.

This trade volume and TVL data is an important window into the state of XRP, but there are other vital clues. For example, according to its own website, XRP currently has 386 nodes and 96 validators.

Compare this to other leading assets, Bitcoin has nearly 22,000 nodes, Ethereum has 11,000, and Solana has 4,700.

In other words, general crypto traders don’t seem to be interested in the network’s utility. It’s a concerning indication that the majority of the community considers XRP primarily as a speculative asset.

However, there is a counter perspective that the XRP community needs to consider. While XRPL DEX volume remains modest, Ripple continues to establish itself as a key infrastructure provider for global banking institutions.

Ripple’s technology streamlines cross-border payments by reducing settlement times and lowering costs, attracting leading banks and financial service providers worldwide. This strong institutional focus drives interest in XRP, as it supports efficient liquidity management.

In this context, XRP’s value proposition extends beyond conventional crypto trading. It plays a larger strategic role in modernizing global financial transactions and bridging traditional finance with emerging digital payment solutions.

So, XRPL’s low trading volume is concerning, but there is a good reason why it doesn’t align with the altcoin’s valuation.

Coinbase is reportedly in talks to acquire Deribit, but nothing is certain yet. If the deal goes through, it could turn Coinbase into a “crypto empire,” thanks to the lucrative derivatives market.

Last year, Deribit posted nearly $1.2 trillion in options, futures, and spot trading. Coinbase has comparatively little derivatives volume, and this merger could supercharge the firm.

Will Coinbase Acquire Deribit

Coinbase, one of the world’s largest crypto exchanges, has gone through a few changes recently. Since the SEC dropped its lawsuit against the company, it’s been able to expand its services. According to a new report from Bloomberg, Coinbase is currently in talks to acquire Deribit.

Deribit is the world’s largest crypto derivatives exchange, an industry sector that isn’t Coinbase’s strong suit. The firm first filed to offer these services in 2021, but Coinbase Derivatives hasn’t been a huge share of its trade volume. Granted, it sought approval for new futures contracts in January, but this is not a primary source of revenue.

However, since the crypto market has suffered from lasting doldrums, there may be an opportunity for future growth. Earlier this month, Coinbase traffic dropped 29%, and a Deribit acquisition may give it huge new revenue streams. Bloomberg claimed that Deribit’s total trade volume last year was nearly $1.2 trillion, which could be a huge asset:

“Anyone else notice how Coinbase is quietly becoming a crypto empire? They’re about to buy Deribit – one of the biggest crypto derivatives exchanges out there. They’re turning into a global powerhouse. Smart move targeting derivatives – that’s where the real volume is,” Zach Humphries claimed in a social media post.

The report had no clear stance on how likely a deal between Coinbase and Deribit might be nor how much it might cost. In January, Deribit considered an offer to get acquired by Kraken for $5 billion, but the deal fell through. If Coinbase pulled the trigger on it, it could become one of the most important business deals in crypto history.

Until we have more information, it’s difficult to make any firm statements about likely outcomes. For example, Deribit was forced out of one of its largest markets last month due to EU sanctions, but a Coinbase acquisition may not change that equation. If a deal does happen, Coinbase will have a real chance to dominate a very lucrative market.

The crypto market had a rather stable week, with the leader, Bitcoin, safe from witnessing any sharp rise or fall. This extended to the meme coins as well, with the lack of volatility resulting in altcoins taking a direction.

BeInCrypto has analyzed three meme coins that took different directions as the market conditions improved.

Toshi (TOSHI)

TOSHI saw a 22% decline this week, but it managed to hold above the critical support level of $0.000331. This resistance has helped prevent further downside, though the ongoing bearish trend has put the meme coin under pressure.

If the bearish momentum continues, TOSHI risks falling below the $0.000331 support, potentially hitting $0.000194. A drop to this level would result in significant losses for investors and may signal deeper bearish sentiment in the market.

Should TOSHI manage to bounce off the $0.000331 support, a recovery toward $0.000420 is likely. A breach above $0.000420 could propel TOSHI towards $0.000577, indicating a potential rally. This positive price action would mark a shift in sentiment.

Peanut The Squirrel (PNUT)

PNUT has experienced minimal price movement, slipping by 4% over the last seven days to trade at $0.163. Unlike many altcoins, it neither saw a significant surge nor a sharp decline. The price action has remained relatively stable, reflecting the market’s cautious sentiment toward the meme coin.

There is a chance that PNUT could face further declines, potentially testing the support level at $0.152. If the price fails to hold this level, it could fall to $0.137. This would signal increased bearish pressure, making it difficult for PNUT to recover unless market conditions improve substantially.

However, if PNUT capitalizes on a recovery and benefits from an improving market sentiment, it could rise to $0.182. A successful breach of this resistance would invalidate the current bearish outlook.

SPX6900 (SPX)

SPX has performed exceptionally well this week, registering a 26% gain. The altcoin is trading at $0.427 at the time of writing, positioning itself as one of the top-performing tokens.

SPX is currently testing the $0.406 support level. If successful in holding this support, the altcoin could see further upside, targeting $0.568. This would help recover losses sustained toward the end of February, pushing SPX toward a more stable and upward trajectory in the coming weeks.

If SPX fails to maintain $0.406 as support, it could face a sharp decline. Falling to $0.250 would mark a significant drop, reaching a five-month low. This would invalidate the bullish outlook and potentially dampen investor sentiment for the altcoin moving forward.