XRP Could See Trillions Inflows with XRPL Grabbing 1% of $1.4 Quadrillion from Tokenization Market

XRP might be on the verge of reaching tremendous heights with opportunity stemming from a $1.4 quadrillion tokenization market. 

Ripple Chief Technical Officer (CTO) David Schwartz asserted that XRP Ledger (XRPL) could grasp a significant part of the $1.4 quadrillion tokenization valuation due to some of its unique features.

For context, XRPL is a decentralized public blockchain built to enhance business operations, utilizing XRP, its native digital currency to process and record financial transactions.

Read Also: $10,000 Price Hope Reignited? XRP Is Poised to Facilitate Over $1.2 Quadrillion

Should Schwartz’s assertion play out, it could result in trillions of dollars flowing into the crypto market, creating an avenue for XRP’s price appreciation. 

XRPL, A Preferred Platform For RWA?

Speaking at the Apex developer summit in 2023, the Ripple CTO highlighted XRPL’s features that have made the platform ideal for RWA tokenization.

Schwartz highlighted XRPL’s low transaction charges and easy integration with Decentralized Exchanges (DEXs), claiming that the features have positioned XRPL for launching tokenized RWAs. The Ripple CTO added that he anticipated a potential 18-month timeline before XRPL can achieve the speculated landmark. 

The 18-month timeline implies that Scwartz’s assertion will happen around October 2024, eight months from now. It is left to see what happens at the stipulated time.

Analyzing The Implications Of Capturing the 1%

Taking to X, a pseudonym “Good Morning Crypto,” revisited Schwartz’s assertion on XRPL’s potential to become the desired destination for RWA tokenization. 

He noted that XRPL capturing just 1% of the $1.4 quadrillion tokenization value would imply a trillion-dollar inflow into the XRP market.

Based on calculations, 1% of $1.4 quadrillion equates to roughly $14 trillion, almost ten times greater than the entire crypto market cap of about $1.72 trillion.

Read Also: Ripple CTO Schwartz States When To Expect Real-World Asset Tokenization On XRP Ledger 

Bill Morgan Thinks Otherwise

Bill Morgan, an X enthusiast and lawyer, waded into the discussion. He took a different approach, questioning the availability of blockchains with in-built DEXs and low transaction charges.

Morgan tweeted, “He makes the point that low fees and integration with the XRPL’s DEX make the XRPL attractive for tokenization of real-world assets. Remind me, how many layer-1 blockchains have an in-built DEX and low fees?”

Meanwhile, Graham Rodford, the Chief Executive Officer (CEO) of U.K. exchange Archax, had speculated about the propensity of the XRPL processing about $50 trillion within the RWA tokenization context in 2025. The CEO’s assertion says a lot about XRPL’s optimistic future.

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