Is XRP Overvalued?
If valuing cryptocurrencies sometimes feels like holding a stethoscope to the weather, there is thankfully a steadier pulse to listen for, and it's compounding utility with compounding trust. Assets that become more useful for serious financial institutions, and more trusted by their risk teams, tend to earn higher and more resilient valuations over time. That, in a nutshell, is the road ahead for XRP (CRYPTO: XRP).
But, with the coin's price rising by about 700% during the past three years alone, reaching more than $3 as of Aug. 18, it's reasonable to have some doubts about whether it's overvalued. Let's unpack the drivers of its valuation a bit more to figure it out.
Image source: Getty Images.
Source Fool.com
