In a series of tweets, influential XRP community figure “All Things XRP” shared compelling arguments for why XRP could soon experience a massive price surge.
The idea revolves around tokenizing real-world assets (RWAs) on the XRP Ledger (XRPL), with a particular focus on tokenized gold.
“Gold on the Blockchain = More Demand for XRP”
According to the commentator, the crypto industry is entering a new financial era where real-world assets like gold and real estate are moving onto blockchain platforms.
Tokenizing these assets allows them to trade more efficiently and securely. All Things XRP argues that the XRP Ledger is in a perfect position to take the lead in this space. He painted a scenario where market participants could buy and sell gold as a tokenized asset on the XRPL.
In this scenario, every transaction would need XRP as a bridge currency, facilitating liquidity. He believes that as institutional investors and traders enter the market, demand for XRP will increase, helping its price soar.
Last year, Ripple expanded its partnership with Archax to tokenize RWAs on the XRPL. Ripple aims “to bring hundreds of millions of dollars” in RWAs to XRPL, further establishing it as a leading network for tokenization.
Ripple’s development arm, RippleX, has also partnered with Zoniqx to enhance multi-asset tokenization on the XRPL.
More Liquidity into XRPL
Furthermore, All Things XRP explained that the influx of tokenized assets, such as gold, will naturally attract large institutions, including banks, asset managers, and other financial players. These institutions will require XRP to execute transactions, creating a positive feedback loop.
The view is that more liquidity flowing through the XRPL will strengthen the ecosystem and lead to a higher valuation for XRP.
Reducing Supply, Increasing Demand
A crucial aspect of the XRP ecosystem is its built-in deflationary mechanism. Every transaction on the XRPL requires a small transaction fee that the network burns.
The community figure stressed that as more transactions occur, the supply of XRP decreases, which can lead to upward price pressure.
For context, the XRP network has only burned 13.663 million XRP tokens from its 100 billion supply. In perspective, this means only 0.0137% of the XRP supply has been burned.
While the figures are minimal, pundits continue to cite the existence of the burn mechanism as a bullish factor.
XRP as Collateral Amid Bank Use
Meanwhile, the tweet emphasizes that institutional adoption of the XRPL is already underway. It cited that Ripple’s On-Demand Liquidity service (now Ripple Payments) is transforming cross-border payments. Notably, this service uses XRP to facilitate transactions.
All Things XRP argued that banks and financial institutions adopting the XRPL to trade tokenized assets will likely integrate XRP for settlement.
Lastly, the commentator noted that new opportunities for XRP use as collateral for loans, yield farming, and other financial products could emerge as DeFi on XRPL expands.
He believes that introducing tokenized gold-backed financial products would open new avenues for XRP to be leveraged, potentially fueling another massive demand surge.
6/ XRP as Collateral? It’s Possible.
DeFi on XRPL is evolving.
What happens when tokenized gold-backed financial products hit the market?
XRP could be used as collateral for loans, yield farming, and more.
Another massive demand driver.
— All Things XRP (@XRP_investing) March 11, 2025
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