As stablecoins and tokenized assets scale into the trillions, a crypto founder argues that XRP current price is unsustainable for the financial role it’s expected to play. This perspective comes from Versan Aljarrah, co-founder of Black Swan Capitalist. In a tweet , he stressed that the current price of around $3 is incompatible with its anticipated role in powering the next wave of tokenized finance.Specifically, Aljarrah stated that if institutions and market participants will use stablecoins for purchasing Treasury debt, digitizing government expenditures, and settling trillions in tokenized assets, it won't be possible to do so with XRP trading at $3.This statement comes as global finance moves decisively toward on-chain settlement , with stablecoins and tokenized treasuries at the heart of the transformation. Given XRP's role in this space, Aljarrah argues that its price must reflect its utility.XRP Amid Trillions in Tokenized AssetsFor years, Ripple has been positioning XRP as a central asset for real-world asset settlement, cross-border transactions, and institutional finance. Citi and Boston Consulting Group project the tokenization of traditional assets, from Treasuries to real estate, to reach $16 trillion by 2030.At such valuation, the role of bridge assets like XRP becomes increasingly critical. A low unit price, as Aljarrah implies, would limit XRP's scalability and capital efficiency in high-value, institutional-grade settlements.For context, as the XRP Army often notes, XRP’s $174 billion market cap does not provide sufficient liquidity to handle transactions in the trillions. However, if the market cap rose, say, $59 trillion, it might.At that massive scale, the implied unit price would align with $1,000 per XRP. As a result, proponents argue that the coin cannot remain low-priced if it is to play a meaningful role in global payments.This echoes recent arguments from other XRP analysts, including Jake Claver, director of Digital Ascension Group, who predicts XRP could reach $1,500–$2,000 under certain global conditions.Claver points to XRP’s potential role during financial crises, noting that institutions will require a liquid, neutral bridge asset. He argues that as legacy systems come under strain, XRP could emerge as the preferred solution for high-value settlements.Stablecoin Backing and Expanding Treasury MarketsIn May, U.S. Senator Bill Hagerty projected that firms issuing stablecoins could grow to be the largest holders of U.S. Treasuries by 2030. He sees them absorbing over $1 trillion in demand.Meanwhile, Ripple has entered the stablecoin market with RLUSD, a dollar-backed token supported by U.S. Treasuries and cash equivalents. As of now, RLUSD has reached a market cap of $577 million in just eight months since its launch.Earlier reports of Ripple’s $4–$5 billion bid to acquire USDC's issuer Circle, though ultimately unsuccessful, highlight an intent to scale RLUSD into a major player, possibly rivaling USDT.Should Ripple aggressively grow RLUSD, XRP could benefit further, as RLUSD runs on the XRP Ledger and uses XRP for transaction fees.Combined with XRP serving as a bridge between tokenized stablecoins, real-world assets, and global currencies, XRP supporters believe a higher price is necessary to match the scale of liquidity required.Enthusiasts often speculate that even if XRP were to handle just 1% of the multi-trillion-dollar volumes of financial giants like SWIFT, its price would need to rise substantially from the current ~$3 level.Ripple’s acquisition of prime broker Hidden Road, which has connections to a U.S. settlement system handling $11 trillion in daily turnover, further fuels speculation and hope surrounding XRP’s price potential.
2025-08-01 19:55
Cardano (ADA) could be on the verge of a substantial price surge, with leading analyst Ali Martinez pointing to a setup that resembles the 2020–2021 bull run. In a post on X today, Martinez shared a side-by-side comparison of ADA’s current trajectory and its historical price movement, suggesting that a breakout may be brewing.Cardano Repeats History — SlowlyMartinez observed that ADA's current price behavior mirrors its previous cycle, albeit with a slower pace of development. Despite this delay, there are structural similarities. This has raised expectations for a significant upward move in the coming months.Martinez’s analysis uses Fibonacci extensions to compare ADA’s 2018–2021 and 2022–2025 cycles. Specifically, in the earlier run, Cardano soared from $0.0944, which aligned with the 0.382 Fibonacci level, to over $3, an impressive 32x jump.Currently trading around $0.72, ADA is hovering just below the 0.5 Fibonacci retracement level at $0.85. According to Martinez, the current position is similar to the historic breakout that led to a 30x surge for ADA.Notably, the projected Fibonacci targets point to potential upside levels for ADA, including reclaiming its previous cycle peak of $3.09 (1.0 extension) and a further expansion to $4.19 (1.272 extension). In the most bullish scenario, Cardano could rise to $6.25 or higher, aligning with the 1.272 Fibonacci level. Cardano weekly chart by Ali Martinez Though the market is moving more gradually this time, Martinez notes that the technical structure remains bullish. ADA initially broke out significantly in December 2024, surpassing $1.23 before cooling off. The coin has since struggled to regain bullish momentum following that retracement.ADA Cup and Handle Pattern Supports Bullish BreakoutOther analysts, such as Crypto Smith, have also identified long-term bullish patterns. Smith recently pointed to a “cup and handle” formation on ADA’s chart. He also noted signs of whale accumulation tapering off, suggesting a major rally to $4 could follow. Developer Activity Strengthens FundamentalsMeanwhile, on the development front, Cardano continues to demonstrate strong on-chain growth. The network has surpassed 300,000 deployed smart contracts. This marks a major milestone since smart contract functionality was introduced through the Alonzo upgrade less than four years ago.The uptick in smart contract deployments underscores increased dApp adoption and growing developer engagement, adding fundamental support to ADA’s bullish technical outlook.
2025-08-01 19:25
The UK’s financial watchdog is preparing to lift restrictions on crypto exchange-traded notes (cETNs) for everyday investors, expanding access beyond institutional players for the first time. On Friday, the Financial Conduct Authority (FCA) announced it will soon allow retail investors in the UK to buy and trade crypto ETNs, a financial product previously available only to institutional investors. The regulator said the decision reflects the growing mainstream adoption and understanding of crypto-backed financial instruments.In a public statement , David Geale, Executive Director of Payments and Digital Finance at the FCA, noted that the market has changed since retail access to cETNs was restricted. He said that greater transparency and oversight now make it possible to give consumers more options, without compromising essential protections.A Move Toward Global HarmonizationWith this policy update, the UK joins countries like the United States, Canada, Hong Kong, and members of the European Union in opening up crypto-linked investment options to non-professional traders. However, only crypto ETNs listed on recognized investment exchanges (RIEs) approved by the FCA will qualify for retail access.Unlike spot crypto ETFs in the U.S., which hold actual digital assets like Bitcoin or Ethereum, crypto ETNs do not. Instead, they are structured as debt obligations. Rather than owning the asset itself, the issuer promises to deliver returns that closely track the asset’s price, minus any associated costs. As a result, ETNs offer a way to gain exposure without directly holding the crypto.Risk Warnings and Regulatory SafeguardsWhile the FCA's decision introduces new opportunities for everyday investors, the agency has emphasized the need for caution. Crypto ETNs will not be covered under the Financial Services Compensation Scheme (FSCS), meaning consumers won’t have protection in the event of issuer failure.Firms selling these products must comply with the FCA’s Consumer Duty rules. This means they must ensure that marketing and product design serve the best interests of customers. Additionally, financial promotion rules will remain in force, requiring clear, non-misleading disclosures about the risks involved.Crypto Derivatives Ban RemainsDespite the updated stance on crypto ETNs, the FCA has reaffirmed its ban on retail trading of crypto derivatives, citing high risk and market volatility. The agency stated that it will continue to monitor the space and adjust its approach to high-risk products when necessary.Over the years, the FCA has gradually eased its hardline stance on digital assets . Since January 2021, it has barred retail access to both crypto ETNs and derivatives. In March 2024, it began allowing professional investors to access regulated cETNs listed on UK exchanges. Among these are products launched on the London Stock Exchange by 21Shares, WisdomTree, and Invesco.While these products attracted modest trading volumes, analysts have predicted that retail access could significantly boost interest and liquidity. Broader Crypto Oversight in the WorksThe UK government seeks to make the country a global hub for crypto innovation, and the FCA is playing a central role in this strategy. To support this effort, a comprehensive regulatory framework covering stablecoins, staking, lending, custody, and trading platforms is currently under consultation. Its implementation will be by 2026.Notably, the FCA has stated that the rollout for retail access to crypto ETNs will be by October this year.
2025-08-01 19:24
