Viewpoint: XRP is being undervalued by the market.

The true function of XRP is understood by very few.

Translated by: Deep Tide TechFlow

The market continues to misjudge XRP because it does not truly understand what it is evaluating. It sees only a token, overlooking the system behind the token.

For years, the market has measured XRP using the wrong metrics. Traders focus on volatility, analysts chase news headlines, but neither has delved into its infrastructure. XRP is not an entertainment tool; it is a financial instrument designed to transmit value globally with precision, finality, and neutrality. Its price has yet to reflect its function because the world has not yet assigned the correct value to that function itself.

The market has yet to master the way to evaluate infrastructure

Infrastructure is always easily misunderstood in its early stages. Investors often chase obvious growth while neglecting the foundations that support that growth. A similar dynamic played out in the early days of the internet. At that time, companies building routers, networks, and data centers had mediocre stock performance, while speculative capital flooded into internet companies with no substantial output.

It was only when this infrastructure became indispensable that capital flowed back to the true builders. Today, XRP finds itself in the same situation. It is the underlying pipeline for the future financial era. The market sees a calm price chart and mistakenly believes it to be insignificant. In reality, the market is witnessing the slow formation of an invisible network that will become a crucial pillar of global liquidity in the future.

The true function of XRP is understood by very few

XRP was not designed to be a speculative asset; its mission is to serve as a bridge asset connecting isolated financial systems. XRP enables liquidity to flow freely between different currencies, payment networks, and tokenized values. Achieving this requires widespread institutional adoption, a clear regulatory framework, and deep technological integration. These processes need to be advanced over years, not completed in just a few weeks.

The market cannot price things it does not understand. It still compares XRP to speculative assets that rely on narrative cycles, while in fact, the entire architecture of XRP is monetary, not promotional. The longer the misunderstanding persists, the greater the revaluation will be once practicality becomes the focus.

Liquidity utility is entirely different from market sentiment

The path to utility adoption is completely different from market sentiment. The growth of liquidity infrastructure is quiet and continuous until it reaches a critical point of systemic necessity. At this stage, existing supply will not meet demand, and prices will quickly adjust to reflect new utility value.

Most traders have never witnessed this because it is the opposite of the drivers in the retail market. The true adoption process is slow, silent, and ultimately definitive. When financial institutions settle real transaction volumes through distributed systems, this liquidity does not dissipate; rather, it deepens over time. The stability of XRP is not a weakness but a true reflection of its current stage.

Debates about supply overlook the key issue

Critics often use XRP's total supply as the sole basis for assessing its potential, but this is not the case. What truly matters is the effective circulating supply relative to utility demand. A large amount of XRP is locked in custodial accounts or long-term storage, and the actual circulating volume for global settlement is far lower than the surface numbers.

As trading volume expands, the velocity of circulation increases, and available liquidity tightens. This compression of circulation, combined with the growth of demand, will lead to true price discovery. This is not speculation; it is a matter of mechanism.

Regulation lays the framework for utility

Traditional financial markets often factor in regulatory considerations before they arrive, while in the digital asset space, regulation is often seen as an afterthought. However, with the clarification of XRP's legal status, this regulatory clarity is milestone significance. It transforms XRP from a legal risk into a compliant bridge mechanism that banks and institutions can actually use.

The market has yet to adjust to this shift, still trading XRP as a marginal tool rather than as a recognized financial channel. This misalignment is one of the most significant asymmetries in today's digital asset space.

The impending wave of tokenized value

The world is on the brink of a new financial structure, where real-world assets will be recorded on ledgers. Bonds, government bonds, currencies, and commodities will all be tokenized and exchanged digitally. For these systems to achieve interoperability, they require a neutral bridge asset capable of settling across networks. XRP was designed precisely for this function.

As the volume of tokenized transactions expands, bridge liquidity will become the new "oil" of global finance. The flow of every on-chain asset will drive demand for a neutral settlement medium. This demand is structural, not driven by speculation, but determined by actual needs.

The understated nature of institutional integration

The true adoption process often occurs quietly. Ripple and its partners operate in regulated environments, prioritizing reliability over publicity. Pilot channels, enterprise solutions, and liquidity partnerships are typically developed and quietly tested in private environments, scaling only when functionality is perfected.

The retail market seeks public hype, while institutions focus on certainty. The infrastructure being laid today will only reflect in prices when it becomes a critical part of operations. By then, the market will realize that the years of silence were actually a process of building.

Perspective determines perception

The difference between speculators and investors lies in the ability to see through the present and envision the future. XRP's current market capitalization appears large when compared to other digital assets, but when measured against global settlement volumes, foreign exchange flows, and the projected scale of tokenized assets, it seems insignificant.

This mispricing stems from the market still viewing XRP as a trade rather than a transformation. It is assigned a value similar to other digital currencies, rather than as a monetary infrastructure capable of driving trillions of dollars in global flows. When the perspective shifts from price charts to liquidity mechanisms, the valuation model will change fundamentally.

XRP is undervalued because the market still sees it as an event rather than a system. The market has yet to realize that value accumulation in financial architecture is slow, but once matured, it will explode rapidly.

When settling through distributed systems becomes the norm rather than an experiment, XRP will no longer need promotion or defense; its utility will be self-evident.

At that point, the market will not discover a new asset but will recognize an asset that has long existed—it has quietly built the foundation for the next generation of value transfer.

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