Could a digital asset like XRP realistically cost a few dollars if that’s the case? is intended to serve as an significant level of liquidity for the global financial system? This question is at the center of the growing debate about the market value of XRP and is the basis for comments shared about X by Jesse from Apex Crypto.
His argument challenges the notion that XRP can function as a global liquidity instrument within Ripple while maintaining a relatively low valuation around $3, which he believes makes no sense.
The Liquidity Argument Behind the XRP Valuation Debate
The price history of XRP shows a clear ceiling that has been challenging to overcome. Since launch, the token has never stayed above the $4 level, with the highest recorded peak being around $3.65 in mid-July. The last few weeks have been even more challenging because XRP is trading below $2 with the entire cryptocurrency market is going through a feeble phase.
Despite this, some bullish analysts continue to speculate on this topic scenarios where the price returns region $3. But that’s the perspective was directly challenged by Jesse from Apex Crypto, who stated that even a $3 valuation essentially defeats the purpose of what XRP is intended to become.
Jesse’s position is based on XRP’s intended role in global finance. According to him, if XRP becomes the primary source of liquidity for cross-border settlements, as it was intended to be, then a valuation of around $3 will not match this responsibility.
In his video commentary, he questioned what XRP would ultimately be backed or tied to, pointing to a structure tied to huge pools of global financial assets. These include fiat currencies, potential central bank digital currencies, and even commodities such as gold and silver. He noted that such a framework would suggest that the total value represented by XRP tokens would match the total value of those underlying assets.
In basic words, if around 100 billion XRP were intended to support or represent liquidity tied to trillions of dollars in global assets, then a single-digit price per token would seem mathematically inconsistent. From this perspective, the valuation of XRP would need to reflect the scale of the asset it allows for movement.
Institutional adoption and pricing reality
The valuation debate is much more sophisticated when placed alongside it Ripple’s growing institutional reach. Ripple continued develop cooperation with bankspayment service providers and finance institutions in many regionswhich supports the view that the company’s technology is gaining traction in customary finance.
At the corporate level, Ripple’s valuation and financial activities are point-wise to high trust from vast investorswhich, according to Jesse from Apex Crypto, should provide a floor for XRP.
However, the market price of XRP did not reflect this institutional active. Even in the case of XRP-related investment products gaining attention and having a steady flowprice action is still confined and the cryptocurrency may continue to trade at low valuations in the near future.
Featured image created with Dall.E, chart from Tradingview.com
