Can a digital asset like XRP realistically be valued at just a few dollars if it is expected to serve as a key liquidity layer for the global financial system? This question is central to a growing debate about XRP’s market value, highlighted in recent comments by Jesse of Apex Crypto on X. He challenges the notion that XRP can function as a worldwide liquidity tool within Ripple’s framework while maintaining a relatively low valuation around $3, arguing that this doesn’t make sense.
The Liquidity Argument in XRP’s Valuation Debate
XRP’s price history shows a clear ceiling it has struggled to break. Since its launch, the token has never sustained a price above $4, with its highest recorded peak around $3.65 in mid-July. Recent weeks have been even more challenging, with XRP trading below $2 amid a broader market downturn.
Despite this, some bullish analysts continue to speculate about the price returning to the $3 range. However, Jesse of Apex Crypto directly challenged this outlook, asserting that even a $3 valuation fundamentally misses the point of what XRP is designed to become.
Jesse’s position centers on XRP’s intended role in global finance. He argues that if XRP evolves into a primary liquidity source for cross-border settlements as intended, a valuation around $3 would not align with that responsibility. In his video commentary, he questioned what would ultimately back or peg XRP, pointing to a structure tied to vast pools of global financial assets. These could include fiat currencies, potential central bank digital currencies, and commodities like gold or silver. He noted that such a framework would imply the total value of XRP tokens should correspond to the combined value of these underlying assets.
In simple terms, if roughly 100 billion XRP tokens are expected to support liquidity linked to trillions of dollars in global assets, then a single-digit price per token seems mathematically inconsistent. From this perspective, XRP’s valuation would need to reflect the scale of the assets it helps move.
Institutional Adoption Versus Price Reality
The valuation debate becomes more complex when considering Ripple’s growing institutional presence. Ripple has continued to expand partnerships with banks, payment providers, and financial institutions worldwide, strengthening the case that its technology is gaining traction in traditional finance.
At the corporate level, Ripple’s valuation and funding activity indicate strong confidence from large investors—a factor Jesse believes should provide a valuation floor for XRP. However, XRP’s market price has not mirrored this institutional momentum. Even with XRP-related investment products gaining attention and steady inflows, its price action remains limited, and the cryptocurrency may continue trading at low valuations in the near term.
Frequently Asked Questions
Of course Here is a list of FAQs about why XRPs current price might not seem to align with expectations framed in a natural tone with direct answers
Beginner General Questions
1 Why isnt XRPs price higher with all the bank partnerships Ripple talks about
Ripples technology and the XRP cryptocurrency are related but separate Banks using RippleNet for settlements often do not use XRP in their transactions So bank adoption doesnt automatically mean massive XRP buying
2 If XRP won its case against the SEC why did the price drop afterwards
The initial price surge was a sell the news event While the ruling was positive it wasnt a complete victory and the SEC is appealing The price often reacts to hype before an event then corrects as traders take profits and the market digests the longerterm implications
3 There are billions of XRP in circulation so isnt it too diluted to ever reach a high price
Market cap matters more than unit price alone For XRP to reach a very high price per token its total market value would need to become enormouslarger than many major companies or even some national economies This is possible but requires unprecedented globalscale adoption
4 I keep hearing about escrow releases Does that hurt the price
Every month 1 billion XRP is released from escrow for Ripple to use While most is often relocked the constant potential selling pressure from these releases can create a psychological and sometimes real ceiling on the price as the market anticipates this new supply
Advanced MarketStructure Questions
5 How does the ongoing SEC lawsuit and appeal affect price discovery
Uncertainty is a major barrier Many large US institutional investors avoid XRP until there is absolute regulatory clarity This limits a huge pool of potential capital from entering keeping price action more reliant on retail traders and speculation
6 Is there a concern about centralization affecting XRPs price potential
Some critics argue that Ripple Labs holds a significant portion of XRP and influences its development which goes against the decentralized