XRP Still Has a Long Way to Go… Is Ethereum the Coin to Dominate the $16 Trillion Tokenization Market?

▲ Ethereum (ETH) / ChatGPT-generated image ©

An analysis suggests that investing $1,000 of spare cash in the upcoming real-world asset (RWA) tokenization market makes Ethereum (ETH) a far more attractive option than XRP (Ripple). While Ethereum holds an overwhelming lead in the scale of tradable assets, XRP is rapidly catching up in the area of tokenized assets used purely for record-keeping, clearly showcasing each network’s respective strengths.

According to The Motley Fool on February 15 (local time), major capital in the cryptocurrency market tends to concentrate on networks that offer ease of management and high returns relative to risk. This dynamic is most evident in the real-world asset sector, where traditional financial products such as stocks and bonds are placed on blockchain networks to automate ownership and transfer rules. Boston Consulting Group projects that the value of tokenized assets could reach approximately $16 trillion by 2030, signaling massive growth potential for related blockchain ecosystems.

In the tradable tokenized asset segment, Ethereum significantly outpaces XRP. As of February 10, the value of tokenized assets traded on the Ethereum network stood at $14.6 billion, marking a 16% increase over the past 30 days and solidifying its dominant position. In contrast, tradable assets on the XRP Ledger (XRPL) rose just 8% during the same period to $303.8 million, falling short of breaking into the top five networks.

Ethereum’s vast asset base translates into richer liquidity and broader expansion of sub-applications. This, in turn, drives an overall increase in economic value across its ecosystem. Therefore, when constructing a $1,000 portfolio, it may be far more advantageous for investors to position Ethereum—the primary beneficiary of the real-world asset tokenization trend—as a core holding.

However, XRP’s value cannot be entirely dismissed. In the segment of represented tokenized assets—where assets are placed on the blockchain purely for record-keeping rather than trading—the XRP Ledger has delivered remarkable performance. The value of represented tokenized assets on XRPL surged 267% in just the past 30 days to reach $1.5 billion, while Ethereum recorded a 25% decline over the same period to $204.8 million.

Although represented assets may have a relatively lower direct impact on coin price appreciation compared to tradable assets, this performance demonstrates that XRP’s financial technology is being actively adopted in real-world industries. In conclusion, Ethereum appears to be the better choice for exposure to tokenized assets, though XRP can also serve as a strong alternative. Nonetheless, as the broader cryptocurrency market remains in a downturn, initiating new purchases at this time may involve considerable risk, requiring heightened caution from investors.

Disclaimer: This article is provided for investment reference purposes only, and no responsibility is assumed for any investment losses resulting from its use. The content should be interpreted solely for informational purposes.