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Hype Will Not Move XRP, Pundit Explains What Could Trigger Long-Term XRP Price Growth
Hype Will Not Move XRP, Pundit Explains What Could Trigger Long-Term XRP Price Growth
April 2, 2025
XRP
A well-known XRP community-driven account has suggested that hype is not enough to push XRP price amid the current bearishness.
Notably, currently trading for $2.10, XRP has remained under bearish pressure despite several promising developments, including reports of its inclusion in a U.S. strategic reserve, the resolution of Ripple’s lawsuit, and multiple ETF filings.
However, according to the community-driven analyst behind the “XRP Investing” account, speculative hype alone will not be enough to drive a sustainable price surge for XRP. Instead, utility and real-world adoption are the major catalysts for long-term price appreciation.
XRPL Utility Could Drive XRP Price Growth
In the commentary, the analyst stressed that XRP’s role in financial infrastructure is important for its future price movement. They argued that if the XRP Ledger (XRPL) begins processing transactions worth $1 trillion daily and fully supports tokenization of real-world assets, XRP could see massive value appreciation.
The analyst compared this to SWIFT, which moves between $5 trillion and $6 trillion daily. If XRPL captures even a small percentage of this transaction volume, it could have some positive impact for XRP.
Notably, the major distinction that many overlook, according to the analyst, is that tokenized assets themselves do not directly use XRP, but they require it to function within the XRPL ecosystem.
For context, every tokenized asset transaction on the ledger demands transaction fees in XRP, reserves held in XRP, and trades facilitated through the cryptocurrency’s decentralized exchange. As tokenization activity grows, these requirements will create a continuous demand for XRP.
XRP Can Thrive on Storage Demand
Further, the analyst noted that an important factor in XRP’s long-term growth is storage demand. Unlike mere transactional use, storage demand emerges when institutions, investors, and market makers hold XRP as part of their operational framework.
4/ Storage Demand.
XRP isn’t just transacted. It’s also held — by market makers, institutions, investors.
And that’s what can drive sustainable value.
So how does tokenization help with that?
— All Things XRP (@XRP_investing) March 29, 2025
When market participants regularly move high-value tokenized assets on the XRPL, the platform gains trust, bringing in serious participants who need to hold XRP to facilitate transactions effectively. These participants are less likely to engage in speculative trading and more inclined to maintain reserves of XRP.
Moreover, according to “XRP Investing,” another principle that could drive XRP’s adoption is the efficiency of large transactions at higher price levels. If the asset’s value increases, the cost of transferring large sums in XRP terms decreases, improving efficiency and reducing slippage.
For example, sending $1 million at $1 per XRP would require one million XRP, while the same transaction at $10 per XRP would require only 100,000 XRP. This makes large-scale transactions more seamless. Interestingly, Ripple CTO David Schwartz mentioned this in 2017, noting that XRP “cannot be dirt cheap.”
XRPL’s Potential to Welcome On-chain Tokenization
Essentially, the “XRP Investing” account emphasized that as on-chain tokenization grows, it increases the overall activity on XRPL. In turn, this drives demand for XRP due to transaction fees and bridging requirements.
With this improvement in utility and efficiency, XRP becomes more attractive to long-term holders, leading to storage demand. Further, as more institutions accumulate and hold XRP, the asset’s value strengthens. This can lead to a sustainable foundation for price growth.
Importantly, the analyst admitted that this process will not result in an overnight price surge. Instead, XRP’s trajectory depends on whether the XRP Ledger becomes a primary network for real-world asset exchange.
They noted that Ethereum experienced a similar transformation when decentralized finance (DeFi) and token issuance increased demand for ETH. Even though many assets were not denominated in ETH, they relied on the blockchain’s native currency for transaction fees and network functionality.
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