XRP’s Valuation Debate: Overvalued Yet Not Worthless, Says Arca CIO

Jeff Dorman, Chief Investment Officer at Arca, recently shared his insights on cryptocurrency valuation frameworks during an appearance on the Empire podcast. He highlighted three critical pillars for assessing a crypto project’s worth: financial value, utility value, and social value. According to Dorman, projects that successfully combine all three attributes tend to thrive, while those relying solely on social value without economic substance risk becoming ephemeral. XRP, with its $131 billion market cap, was a focal point of discussion. Dorman described it as ’insanely overvalued’ but stopped short of calling it ’worthless,’ acknowledging its utility and financial merits despite the controversy surrounding its valuation. This analysis comes at a time when the crypto market continues to evolve, with investors increasingly scrutinizing the intrinsic value of digital assets beyond mere hype. The discussion underscores the ongoing debate about how to properly evaluate cryptocurrencies, especially those like XRP that occupy a unique space in the ecosystem.

Expert Says XRP is ‘Insanely Overvalued’ But Not ‘Worthless’

Jeff Dorman, CIO of Arca, dissected crypto valuation frameworks on the Empire podcast, emphasizing three pillars: financial, utility, and social value. Projects thrive when combining all attributes, though standalone utility or financial merit still confers worth. Pure social value, however, risks becoming ephemeral without economic substance.

XRP exemplifies this tension. Despite a $131 billion market cap, Dorman labels it "insanely overvalued"—yet stops short of calling it worthless. The token’s utility in cross-border payments provides a floor, even as speculative fervor detaches price from fundamentals.

IntoTheBlock and Trident Merge to Form Sentora, Secure $25M for Institutional DeFi Gateway

Decentralized finance firms IntoTheBlock and Trident Digital have merged to create Sentora, a new entity focused on bridging institutional investors with onchain opportunities. The combined venture has secured up to $25 million in funding, led by New Form Capital with participation from Ripple, Tribe Capital, UDHC, and Joint Effects.

Anthony DeMartino, Trident co-founder and former Coinbase risk strategist, will helm Sentora as the DeFi sector evolves beyond its early volatility into a structured financial ecosystem. Strategic backers include Curved Ventures, Flare, and Bankai Ventures—signaling growing confidence in institutional-grade blockchain infrastructure.

The merger reflects accelerating consolidation in decentralized finance as protocols increasingly cater to sophisticated players. While no specific tokens were named in the announcement, the involvement of Ripple (XRP) investors suggests potential cross-chain interoperability ambitions.

Ripple’s Q1 2025 Report Highlights XRP’s 50% Growth and Institutional Interest

Ripple kicked off 2025 with a strong performance, marked by significant developments for XRP and the broader cryptocurrency market. The Q1 2025 report revealed a nearly 50% surge in XRP’s value, drawing heightened attention from institutional investors.

A pivotal moment came in April 2025 when Ripple and the U.S. Securities and Exchange Commission (SEC) reached an agreement to settle their long-standing legal dispute. The case, which began in December 2020, was dropped after the SEC acknowledged enforcement limitations.

The quarter also saw Ripple’s strategic acquisition of Hidden Road for $1.25 billion, a move aimed at scaling the XRP Ledger (XRPL) ecosystem. This growth trajectory underscores XRP’s resilience and increasing adoption in the digital asset space.

Analyst Advocates for XRP Accumulation at $2.20 Amid Institutional Demand Expectations

XRP trader J4b1 reignited bullish sentiment with a technical and historical analysis suggesting the $2.20 price level remains an attractive entry point. The assessment draws parallels to 2017’s parabolic rally to $3.84, fueled by institutional adoption of Ripple’s cross-border payment solutions.

Market observers note the token’s evolution from sub-penny obscurity to a liquidity tool for financial institutions. Settlement efficiency and cost reduction features continue driving speculative interest, particularly as Ripple executes strategic price management during market downturns.

XRP Price Nears Critical Support Amid Bearish Pressure

XRP’s price action remains subdued, with a 5.34% weekly decline compounding similar losses from the prior weekend. The cryptocurrency now teeters NEAR a pivotal $2.04 support level, a threshold whose breach could trigger accelerated downward momentum.

Market dynamics show bears maintaining dominance, though bulls continue defending the key support zone. Technical patterns suggest growing short-term bearish conviction, with the $2 psychological level emerging as the next battleground. A decisive break below this threshold would confirm weakening demand.