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Ripple has stressed that tokenization will be a focus in the financial industry. In its recent report on digital asset custody, the company emphasized that trust is a key factor that institutions should consider as they enter tokenized markets. Ripple pointed out a projection by the Boston Consulting Group that tokenized assets might constitute 10% of global GDP by 2030.
The world economy, valued at $86.1 trillion in 2020, is projected to grow to $111.2 trillion by 2024. With a current annual growth rate of 6.69%, the total GDP is expected to reach $164 trillion by 2030. Should 10% of that be tokenized, an estimated market of $16.4 trillion would be reached. Analysts believe that XRP Ledger-like platforms have the potential to capture a large share of this market.
Industry participants have identified the XRP Ledger's infrastructure as appropriate for tokenization. Bitwise found XRP to be a clean exposure to this sector, and years ago, Ripple CTO David Schwartz stated that the network was heading this way. Should the XRP Ledger take 15% of tokenized assets, it would have a value of $2.46 trillion.
Under speculative conditions, the XRP price is set significantly higher. A fully reserve-backed system pegged to tokenized assets with 59.48 billion tokens in circulation would push prices up to $41. More conservative models view the utility of XRP in cross-border settlement. Assuming XRP processes 3% of the world's GDP flows by 2030, which would entail 20% reserve coverage, its amount would be approximately $984 billion, equivalent to $16.55 per token. Other analysts continue to make this estimation higher, stating that values should be between $40 and $50 with speculative premiums.
Although the long-term projections are optimistic, the near-term price recovery of XRP is poor. According to the exchange data, Binance reserves grew by $2.92 billion to $3.6 billion in XRP, further exerting selling pressure. This was accompanied by a 25% reduction in the high price of $3.65.
On-chain flows also support distribution by large holders. The whale action became negative, and the 30-day data reflected continued selling following the recent spurt. Meanwhile, the open interest of XRP has been decreasing, which indicates some uncertainty regarding future ETF approvals. SEC has postponed rulings until October, and traders are on edge
In the most recent trading, XRP price hovered between $2.81 and $2.87. The volume of transactions has increased tremendously, as the XRP Ledger handled 2.15 billion tokens on September 1. Analysts are divided on the direction of the price. Some point to bullish patterns that lead to $7 to $13, and others caution against resistance at lower levels below 3.30.
Technical readings affirm the classification of weakness. The price is below the 50-day moving average of $3.09, and the RSI of 43 indicates negative movement. Additional pressure is created by broader market uncertainty, which is associated with US inflation issues and Federal Reserve policy.
Also Read: XRP’s $5 Push Begins with Bulls Targeting $10 Milestone
