The rapid expansion of tokenized assets on the XRP Ledger is fueling renewed debate over whether XRP can reach a $10 valuation, even as the token continues to trade near $1.40 and remains under pressure this year. While institutional adoption of tokenization on XRPL is accelerating, the disconnect between rising on chain asset value and limited demand for XRP itself is becoming more visible. Market participants are now focusing on whether XRP can evolve into a core liquidity layer for tokenized finance or remain primarily a low cost transaction token with limited price upside.
Data shows that the XRP Ledger now hosts around $2.3 billion in tokenized real world assets, marking a sharp increase from under $1 billion earlier in the year. This growth has positioned XRPL ahead of several competing networks in terms of total tokenized value. However, much of this activity remains concentrated among a small number of institutional participants, with only a few dozen wallets holding these assets. A large portion of the value is also categorized as internal representations rather than actively traded tokens, limiting real market liquidity and reducing direct demand for XRP.
The structure of XRPL’s ecosystem helps explain this gap between growth and price performance. Transaction fees on the network are extremely low, requiring only a fraction of an XRP per transaction, which means even significant increases in activity do not meaningfully reduce circulating supply. While reserve requirements lock a small amount of XRP per account, the current scale of adoption remains too limited to create noticeable upward pressure on price. As a result, billions of dollars in tokenized assets can exist on the network without translating into meaningful token demand.
Despite these constraints, XRP continues to play a central role within the XRPL trading environment. A large majority of decentralized exchange activity on the network is routed through XRP trading pairs, positioning it as a default bridge asset for transactions between tokenized assets. Analysts note that if institutional trading volumes increase significantly, market makers may need to hold XRP as working capital, potentially strengthening demand. However, current daily trading volumes remain relatively low, highlighting the early stage of development in XRPL’s tokenized asset marketplace.
Competition in the tokenization space remains intense, with Ethereum maintaining a dominant position supported by deeper liquidity, a larger developer ecosystem, and significantly higher total value locked. Other networks are also expanding rapidly, offering alternative solutions for institutions exploring tokenized finance. While XRPL differentiates itself through compliance focused features and fast settlement speeds, it still faces challenges in scaling its ecosystem to match the broader infrastructure and activity levels seen on rival platforms.
For XRP to approach a $10 valuation, analysts estimate that the network would need to capture a meaningful share of the global tokenization market while ensuring XRP is actively used as a liquidity bridge rather than just a transaction fee mechanism. This would require sustained growth in trading volumes, broader participation from institutions, and a shift toward active secondary markets for tokenized assets. Without these developments, the current trajectory suggests that tokenization growth alone may not be sufficient to drive a major revaluation of the asset.
