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Here’s Why Low XRP Price Cannot Power the Tokenized Financial Market Being Built
Here’s Why Low XRP Price Cannot Power the Tokenized Financial Market Being Built
August 6, 2025
XRP
Versan Aljarrah, host of the Black Swan Capitalist, has insisted that XRP price would need to rise significantly to provide the necessary liquidity for the tokenization market. His recent comments on this build on the sentiment that XRP will power the movement of assets across the growing tokenization market, projected to reach trillions in the coming years. Notably, the original XRPL architects built the platform for payments, with XRP’s major utility being its ability to serve as a bridge asset.
Despite Its Attractive Features, XRP Price Too Low to Power the Tokenization Market
Specifically, with its speed, low transaction cost, and impeccable settlement time, XRP has positioned itself as the perfect candidate for moving assets across borders. Ripple leveraged the token for its On-Demand Liquidity (now Ripple Payments), and it has served its purpose without hassle for years.
Aljarrah mentioned that the growing tokenization market, teased by business executives such as BlackRock’s Larry Fink and Robinhood CEO Vlad Tenev, would require a bridge asset with high value. He insisted that a low XRP price cannot meet that amount of demand.
XRP Price Would Need to Rise to Provide Sufficient Liquidity
For context, XRP, which currently trades for $2.91, has a market cap of $172.3 billion and a fully diluted valuation of $290 billion, considering its total supply of about 99 billion tokens. Aljarrah’s commentary suggests that an asset with a valuation of about $290 billion will not be enough to provide liquidity for asset movements.
Notably, XRP and the XRPL are already making an appearance in discussions around the growing tokenization market. For instance, Bitwise recently suggested that buying XRP is a clean way to invest in tokenization. Also, Ripple CTO David Schwartz previously claimed the XRPL could become the go-to platform for RWA tokenization.
If this projection materializes and XRP grows to power the movement of tokenized real-world assets on-chain, a $290 billion valuation will not be enough. Specifically, a report from Ripple and the Boston Consulting Group (BCG) revealed that the real-world assets tokenization market stood at a $600 billion valuation in April 2025, and could hit $18.9 trillion in 2033.
Moreover, Standard Chartered predicted earlier this year that the market could hit $30 trillion by 2034. Notably, for XRP to provide sufficient liquidity for a $30 trillion market, its valuation would have to increase substantially.
Nonetheless, XRP is pre-mined, indicating that the system cannot create more tokens. As a result, the only avenue through which its valuation could rise is with a spike in price. This is one of the reasons behind price projections of a possible run to $100 and $1,000.
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