Why The Current XRP Valuation Doesn’t Make Sense

[Ben Graham]

Can a digital asset like XRP realistically sit at a few dollars if it is expected to serve as an important liquidity layer for the global financial system? That question is at the center of a growing debate around XRP’s market value and is the basis of comments shared on X by Jesse of Apex Crypto.

His argument challenges the idea that XRP can function as a worldwide liquidity instrument through Ripple’s framework while maintaining a relatively low valuation around $3, which he says doesn’t make sense.

The Liquidity Argument Behind XRP’s Valuation Debate

XRP’s price history shows a clear ceiling that it has struggled to overcome. Since launch, the token has never sustained a move above the $4 level, with its highest recorded peak sitting around $3.65 in mid-July. Recent weeks have been even more challenging, as XRP has been trading under $2 with the entire crypto market going through a weak phase.

Despite this, some bullish analysts continue to speculate about scenarios where the price revisits the $3 region. That outlook, however, was directly challenged by Jesse of Apex Crypto, who asserted that even a $3 valuation fundamentally misses the point of what XRP is designed to become.

Jesse’s position is built around XRP’s intended role in global finance. According to him, if XRP grows into a primary liquidity source for cross-border settlements like it was intended to be, then a valuation around $3 would not align with that responsibility. 

In his video commentary, he questioned what XRP would ultimately be backed by or pegged to, pointing to a structure tied to vast pools of global financial assets. These include fiat currencies, potential central bank digital currencies, and even commodities such as gold or silver. He noted that such a framework would imply that the total value represented by XRP tokens would correspond to the combined value of these underlying assets. 

In simple terms, if roughly 100 billion XRP were expected to support or represent liquidity linked to trillions of dollars in global assets, then a single-digit price per token would appear 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 is much more complex when placed alongside Ripple’s growing institutional footprint. Ripple has continued to expand partnerships with banks, payment providers, and financial institutions across multiple regions, which strengthens the case that its technology is gaining traction within traditional finance. 

At the corporate level, Ripple’s valuation and funding activity point to strong confidence from large investors, a factor Jesse of Apex Crypto believes should provide a valuation floor for XRP.

However, XRP’s market price has not mirrored this institutioacnal momentum. Even with XRP-related investment products gaining attention and steady inflows, the price action is still limited, and the cryptocurrency might continue trading at low valuations in the near term.