XRP faces renewed criticism after crypto investor Jeff Dorman warned about its valuation. In a recent YouTube discussion, Dorman stated that XRP is “insanely overvalued,” with its price driven mainly by social hype rather than real-world usage or financial performance.
According to Dorman, XRP’s current market value lacks a foundation in either financial metrics or practical utility. He explained that the token holds no measurable financial return and is not widely used in its intended institutional functions.
Instead, Dorman attributed XRP’s strength to social capital. He compared it to stocks like GameStop, which gained value through strong community support rather than company fundamentals. He said XRP benefits from a similar dynamic where its worth is tied to public sentiment and branding.
Despite the harsh critique, Dorman clarified that XRP is not without value. He described it as an expensive option on what the asset could become in the future. The token, he added, has built strong brand recognition and investor faith, which currently sustain its market price.
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Ripple continues to market XRP as a solution for institutional finance and cross-border payments. However, Dorman pointed out that real-world usage of XRP in these sectors remains minimal.
He said the company appears to be following a “fake it until you make it” approach, relying on narrative over adoption.
Social Capital Keeps XRP Afloat as Traditional Metrics Fall Short
XRP’s rise has come mainly from community belief and strong branding rather than significant financial breakthroughs. While this model can attract attention, Dorman noted that it also makes the asset difficult to assess using conventional methods.
According to his warning, XRP tokens face deep price fluctuations based on sentiment trends and supporter loyalty shifts over time. Ripple maintains strong support because of the continued backing from its key leadership and major stakeholders, who drive confidence in its project.
The investor avoids social hype investing because its unpredictable nature leads to unstable returns. Despite this, he recognizes that social capital functions as a true value influencer in contemporary crypto markets.
Recent market behavior of XRP shows high volatility due to both emerging exchange-traded fund discussions and regular regulatory developments. Despite lackluster adoption figures, the cryptocurrency maintains strong market interest because of its community backing and brand presence.
According to Dorman, the growing market concern involves tokens whose financial or technical utility remains unclear. XRP’s price will likely experience corrective movements because Ripple must transform its marketing hype into a sustainable product ecosystem.
XRP’s valuation continues to be shaped by community enthusiasm rather than functional progress. The thriving future of the token depends on Ripple successfully developing their investor-backed hype into practical implementation.
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