Ripple's XRP Rebound Hinges on Real-World Asset Tokenization
XRP has been on a downward trend for the past year, falling by 70% and trading at just $1. Analysts initially predicted it would reach $10 in 12 months ago, but now they're debating whether it can avoid falling to zero.
The token's original use case was as a bridge currency for cross-border payments, but dollar-pegged stablecoins like USDC and USDT have absorbed this function. They offer the same service with less volatility, making them more practical for institutions to use.
Ripple has spent over $3 billion on acquisitions in an attempt to pivot towards real-world asset tokenization, a market projected to become multitrillion-dollar opportunity in the coming decade. If the XRP Ledger captures share of this activity, it could transform the demand case for the underlying token.