XRP – Valuation, Trust and the Path Ahead

In the crypto world, valuing assets is sometimes like "putting a stethoscope to the sky to hear the weather." However, with some coins, there is a more stable rhythm to follow – that is the value derived from the increase in utility and the increase in trust. Assets that are becoming increasingly useful to large financial institutions, and are trusted more by their risk management teams, will often have higher and more sustainable valuations over time. XRP (CRYPTO: XRP) is a typical example of this path. In the past three years, the price of XRP has increased by about 700%, reaching over 3 USD on August 18. The question arises: Is this coin being overvalued? To answer, let's analyze the main drivers behind the value of XRP.

1. Legal And Institutional Barriers Are Becoming More Solid Ripple – the company behind XRP – has demonstrated its ability to build close relationships with both regulators and financial institutions. Legal issues: In early August 2024, the U.S. Securities and Exchange Commission (SEC) officially closed a years-long lawsuit against Ripple regarding the allegations of unregistered securities issuance. This is a major turning point, removing the "legal cloud" that had previously overshadowed Ripple's core operations. While many other crypto projects still face the risk of similar lawsuits, Ripple has escaped this turmoil. Global legal expansion: Ripple is also very proactive in building trust with international regulators. In Singapore, Ripple's subsidiary received a Major Payment Institution license from the Monetary Authority of Singapore (MAS) in 2023 – an important testament to its credibility. Additionally, Ripple has made its mark in Dubai, where XRP was chosen for use in the city's real estate tokenization project. Penetration into traditional finance: Ripple acquired Metaco in 2023 – a digital asset custody service provider for major banks. By mid-2024, Ripple continued to acquire Standard Custody, allowing the company to own a special purpose trust license – a type of license that traditional financial institutions often prioritize when collaborating with digital asset service providers. All these moves help Ripple to no longer rely solely on the "marketing story", but instead establish a solid, rare, and difficult-to-build foundation. This is what makes XRP less likely to be overvalued.
2. There Aren't Too Many "Bubbles" to Worry About Financial institutions participating in the crypto market often pay attention to three factors: Legal compliance money transfer systemTransparent and secure asset control processLow-barrier technology integration XRP Ledger (XRPL) has met these needs with compliance features right from the protocol level, instead of relying on complex intermediary layers. This minimizes friction in the integration process into the organization's system. Compared to competitors, XRPL has a clear advantage. However, XRP also faces increasing competition from other blockchains, especially those with richer DeFi ecosystems. But it should be emphasized that the investment thesis for XRP is not that it needs to become the "all-purpose chain" for all users. Instead, the core value of XRP comes from: Continuously reducing risks in the eyes of regulators and financial institutions. The process of developing stable and sustainable technology. The abundant liquidity that XRP brings to the market. In other words, the valuation of XRP is not based on grand promises, but on the hard achievements that have been made, along with the key resources that Ripple holds.
3. Future Price Prediction of $XRP If Ripple continues to maintain: Clarity in the legal framework Strong relationships with regulatory agencies Trust from financial institutions Increased number of practical integrations XRP is not considered to be overvalued at all. On the contrary, it may have a lot of room for growth thanks to its solid foundation and increasing level of trust. 👉 In summary, XRP is proving its value not only through price increases but also by building long-term trust with the most important participants in the global financial market. This is the factor that helps this coin become more sustainable in the development journey ahead.