An XRP community commentator has suggested that the path to greater heights is obvious for XRP holders, pointing to a growing trend on the XRPL.
This encouraging commentary came from Max Avery, an XRP permabull, on the back of the ongoing price turbulence that has kept the altcoin below the $2.5 threshold. Notably, XRP collapsed to this low region amid the Oct. 10 market-wide crash, and has since continued to struggle in the push to recover.
However, despite this, Avery believes “the upside is obvious” for XRP holders. Essentially, the market commentator suggests that investors holding XRP should be fully confident in the altcoin’s potential to push higher. While there are multiple bullish factors contributing to this, Avery called attention to one in his commentary.
Growing Traction Surrounding Tokenization
According to the pundit, the growing trend of real-world assets (RWA) tokenization could propel this upward push for XRP. For context, industry leaders such as BlackRock CEO Larry Fink and Robinhood CEO Vlad Tenev have insisted that tokenization is the next big financial breakthrough, and their respective firms are already looking to lock in.
Specifically, in a speech at the latest Token2049 conference, Tenev argued that tokenization would “swallow the entire financial system.” Also, Fink had previously insisted that tokenization could cover every financial asset. BlackRock entered the market last March with the launch of its BUIDL fund.
While total RWA onchain currently amounts to $33.98 billion, per RWA.xyz, the World Economic Forum predicts a rise to $867 trillion. Interestingly, amid the rising traction surrounding tokenization, multiple sources have suggested that the XRP Ledger could become one of the leaders of the growing sector. For instance, Bitwise said buying XRP is a way to invest in the future of tokenization.
Tokenization on the XRPL Could Boost XRP
It is against this backdrop that Avery insists that XRP’s upside is an obvious phenomenon. Importantly, with the XRPL positioned to accommodate part of the tokenization trend, he explained that each time a new institution decides to leverage the network for issuing or trading tokenized assets, this will contribute to network activity, real-world use, and volume.
According to Avery, Ripple’s focus has been to transform the XRPL into the preferred platform for issuing and moving tokenized funds. Notably, Ripple CTO David Schwartz, who recently confirmed his resignation, revealed two years back that the XRPL was pivoting to RWA tokenization.
Taking all this into account, Avery insisted that the XRP Ledger could become the foundation for the next financial transformation in the future. Importantly, if the ledger assumes this position, it will have a direct impact on the price of XRP, which serves as the gas token for the network.
Interestingly, a September analysis from The Crypto Basic found that XRP could reach $50, and possibly soar to $100, if the XRPL captured a good portion of the tokenization market and the sector itself covers 10% of global GDP in the next five years.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
