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On-chain data shows the XRP Network Value to Transactions (NVT) Ratio has seen some spikes recently. Here’s what it means for the asset. XRP NVT Ratio Reached A High Of 1,162 Earlier In The Month In a CryptoQuant Quicktake post, analyst Maartunn has discussed about how the latest trend in the NVT Ratio of XRP has been like. The “NVT Ratio” here refers to an indicator that keeps track of the ratio between the market cap of the asset and its transaction volume (both in USD). Related Reading: Dogecoin Explodes 150% As Shark & Whale Buying Returns When the value of this metric is high, it means the value of the network (represented by its market cap) is high compared to its ability to transact coins (measured by its volume). Such a trend could imply the asset may be overvalued. On the other hand, the indicator being low suggests the market cap isn’t inflated when compared to the transaction volume, so the asset’s price could be due a rebound to the upside. Now, here is a chart that shows the trend in the XRP NVT Ratio over the last few years: As displayed in the above graph, the XRP NVT Ratio has witnessed some spikes recently, with a particularly large one having come on the 2nd of this month. These recent highs in the indicator would imply the market cap of the coin isn’t being justified by its volume. Over the last week, the asset has registered a jump of more than 25% in its price, but if volume doesn’t catch up soon, it’s possible that the rally would run out of steam before long. Something else that could be a danger to the XRP run is an excess of Fear Of Missing Out (FOMO) developing among the investors. According to data from the analytics firm Santiment, a couple of FOMO indicators related to the the asset have seen a surge recently. The metrics in question are the Binance Funding Rate and the Social Dominance. The former of these keeps track of the ratio between the long and short positions present on the cryptocurrency exchange Binance, while the latter measures the percentage of social media discussions related to the top 100 cryptocurrencies that XRP alone is contributing. Below is the chart shared by the analytics firm that shows how these metrics have changed for the coin recently. From the graph, it’s apparent that traders on Binance have opened a massive amount of long positions alongside the price surge as the Funding Rate has turned highly positive. Related Reading: Ethereum Could Be Set To Explore New Highs As On-Chain Metrics Light Up The Social Dominance has also seen an uplift of its own, with XRP-related discussions making up for more than 4% of social media discussions around the cryptocurrency sector. Both of these can point to the presence of excessive hype in the market, which is something that has historically led to a top for the asset. XRP Price XRP had surged to a high of $0.74 yesterday, but it appears the coin has seen a pullback since then as its price is now floating around $0.67. Featured image from Dall-E, Santiment.net, CryptoQuant.com, chart from TradingView.com