- A crypto analyst has examined how the tokenization of gold on the XRP Ledger (XRP) could impact the price of XRP.
- According to him, gold on the XRPL would increase demand for XRP, which would subsequently lead to a significant price surge.
XRP has shown resilience as it successfully holds above a crucial support level at $2.0 to stage a 2.2% rebound on the 24-hour price chart, sending the price to $2.1 at press time. According to our market data, the asset is attempting to overturn the downward pressure that has dragged its market cap down to $128 billion at press time.
Commenting on the general behaviour of the price and the ongoing development in the ecosystem, a crypto pundit identified as “All Things XRP” has predicted that the asset could embark on a massive surge. As reviewed by CNF, this analyst believes that the rising activities of tokenized Real World Assets (RWA) like gold could be the game changer.
Shedding more light on this, “All Things XRP” explained that digital operations have significantly shifted to the tokenization of RWAs like gold, real estate, and commodities on-chain.
Meanwhile, Ripple has made the initial move to partner with a leading US Fintech company, Meld Gold, to launch two new stablecoins backed by gold and silver on the XRP Ledger (XRPL). As covered in our previous news brief, the Gold and Silver assets are fully redeemable for Gold bullion and Silver bullion, respectively.
According to the XRP enthusiast, gold on the blockchain would significantly increase demand for XRP as institutions and banks would need it for liquidity. In the long run, this would decrease the circulating supply against the rising demand and push the asset up the price curve. Meanwhile, RWA tokenization is reported to benefit greatly from the XRPL. As noted in our earlier post, its decentralized exchange allows the trading of tokenized assets without the need for a specialized contract.
More on the Impact of Tokenized Gold on XRP
Speaking on the impact of gold tokenization on XRP, “All Things XRP” pointed out that tokenized gold would drive big players – banks, institutions, and asset managers into the network. Per his analysis, more of the assets would increase liquidity.
According to him, more liquidity would strengthen the XRPL, while a stronger network would push up the XRP valuation. Meanwhile, every gold trade on the XRPL would require a transaction fee. Burning these fees would also steadily reduce the circulating supply and push the price.
Institutional Adoption is Coming. Banks and investment firms will use XRPL to trade tokenized gold. And guess what? They’ll integrate XRP for settlements. This isn’t just speculation—Ripple’s ODL (On-Demand Liquidity) is already transforming cross-border payments.
Apart from these, the pundit believes that Decentralized Finance (DeFi) on the XRPL has evolved to the point where XRP could be used for collateral. According to him, the dramatic entry of tokenized gold backed by financial institutions into the market could make it easier for XRP to be used as collateral for loans, yield farming, etc.
With this into play, an analyst identified as Egrag Crypto has predicted that XRP could hit $27 this cycle. As detailed in our last news piece, the analyst arrived at this point by applying a 718% surge on the all-time high level of $3.4.
