- Archax exchange CEO Graham Rodford says that by 2025, there will be up to $50 trillion in trading volume on XRPL as it sweeps up the traditional asset market.
- The projection relies on XRP surging by over 180,000% from its current price, which will depend on its adoption beyond speculation and into tokenization, payments and other utility.
The XRP Ledger (XRPL) will be processing up to $50 trillion in the next two years, believes Graham Rodford, the CEO of London-based institutional-grade crypto exchange Archax. Rodford says that XRPL is infiltrating a multi-trillion dollar market in financial clearing and settlements and that it only takes one major player to switch to the ledger for it to blow up and attract trillions of dollars.
At Swell 2023, Rodford was part of a panel discussion moderated by RippleX SVP Markus Infranger on how tokenization can bring financial markets on-chain. While some in the industry expect new liquidity and capital to flow in and boost tokenization efforts, Rodford told the attendees that the target should be the existing financial market. Moving the existing liquidity on-chain could be the foundation of a multi-trillion-dollar opportunity.
In his prediction of how big the market for real-world asset (RWA) tokenization is, Rodford was bold, stating:
We could see $30-$50 trillion, all on XRPL and trading on Archax.
To support his claim, the former HSBC executive noted that the total market for “everything that’s ever out there” is $1.4 quadrillion. All these asset classes have started moving on-chain gradually, and the pace will only accelerate in the coming years. He added that on-chain instruments like tokenized treasuries are also gaining increasing interest, proving the market is ready.
He further noted that the top clearing and settlement platforms—DTCC, Euroclear and Clearstream—have all started exploring blockchain solutions.
“It only takes one of them to flip onto natively digital, and that’s trillions of assets on its own that move. We could see tens of trillions. And bear in mind that it’s $1.4 quadrillion [in overall market value]; this is still a tiny slice of a huge market,” he pointed out.
According to analysts, if XRPL were to process $30-$50 trillion in assets, the price of XRP would soar to $900. At press time, the crypto trades at $0.523, shedding 0.4% in the past day as volatility continues to dip. To hit $900, XRP would need to gain by nearly 180,000% within the next two years. At $900, XRP would have a market cap of $49 trillion, which is close to four times the current gold market cap.
While the predictions are speculative, the latest report from Ripple has revealed that XRP recorded a substantial increase in trading volume last quarter.
“The substantial increase in XRP trading volume reflects the growing momentum and investor confidence in the XRP ecosystem. It signifies a positive trajectory for XRP amid evolving market conditions,” a Ripple spokesperson commented.
