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With Fundstrat’s Tom Lee suggesting that the crypto market has room for more exponential growth, $XRP could benefit from such upside if it plays out.
Notably, Fundstrat co-founder Tom Lee presented a confident outlook for the crypto market at Binance Blockchain Week in Dubai, arguing that he sees far more growth ahead than behind.
Lee pushed back against the belief that crypto has already hit its peak, suggesting that the last decade does not tell the full story of where this industry can go.
Key Points
- Crypto Market Growth Potential According to Tom Lee: Tom Lee of Fundstrat sees significant growth opportunities ahead for the crypto industry, arguing that the industry is still in its early stages and has much more room to expand.
- Large Untapped Market for Blockchain Assets: Lee highlights that only a small fraction of global wealth is invested in cryptocurrencies, suggesting a potential 200x increase in adoption if more people and institutions embrace blockchain assets.
- Institutional Capital Remains Largely Unexploited: A Bank of America survey shows that 67% of professional fund managers have no exposure to Bitcoin, indicating a significant gap between potential demand and current institutional investment.
- Shift Toward Tokenization of Real-World Assets: Major Wall Street firms aim to tokenize assets like real estate, which could total around $1 quadrillion, moving vast pools of traditional assets onto blockchain platforms.
- $XRP Could Benefit from Blockchain Growth, But Future Price Is Uncertain: If tokenization accelerates and $XRP maintains a 4% market share in a $1 quadrillion ecosystem, its value could theoretically reach around $664 per token, though actual price reactions remain uncertain.
Tom Lee Says the Crypto Market Still Has More to Grow
He called attention to a major gap between today’s participation and the potential global audience. According to him, only about 4.4 million Bitcoin wallets currently hold more than $10,000. He then compared this to roughly 900 million people worldwide who keep more than $10,000 in their retirement savings.
Lee, who also serves as BitMine’s Chairman, explained that if Bitcoin eventually reaches this kind of global presence, the market would see a 200x jump in adoption. He described this level of expansion as both exponential and firmly in hyper-growth territory.
The industry leader also highlighted a recent Bank of America survey that shows how much institutional capital still sits on the sidelines. According to Lee, 67% of professional fund managers report zero allocation to Bitcoin. He said this number shows the wide gap between potential demand and current exposure.
Lee then called attention to the massive push inside traditional finance to bring real-world assets onto blockchain platforms.
He said major Wall Street institutions want to tokenize nearly every type of financial product. When he included global real estate in that estimate, he placed the value near $1 quadrillion. He argued that these firms want to move this entire pool of assets onto blockchain rails.
$XRP Price If It Benefits from This Shift
Notably, this sort of environment could also support $XRP. The asset holds roughly 4% market share among major cryptocurrencies. If tokenization accelerates and more financial activity shifts to blockchain settlement, $XRP could gain from that momentum.
Still, no one can say how $XRP’s price will react as it remains unclear how much liquidity $XRP could capture if this move takes hold. As a result, we asked Google Gemini to analyze Tom Lee’s projection.
Gemini first explained that Lee’s $1 quadrillion figure represents the total addressable market for tokenized financial assets such as stocks, bonds, commodities, and real estate. The chatbot emphasized that this number refers to the value of assets that could eventually move on-chain, not the future market cap of cryptocurrencies alone.
It then stressed that if the tokenized ecosystem eventually grows to $1 quadrillion and $XRP keeps a 4% share within that environment, $XRP would account for forty trillion dollars of value.
Gemini used an estimated circulating supply of 60.2 billion tokens to run the calculation. When it divided the $40 trillion figure by the circulating supply, the hypothetical price came out to roughly $664 per $XRP.
The chatbot called this a bullish scenario that requires several major developments. Specifically, it would need near-total tokenization of global markets, widespread use of blockchain settlement, and a leading liquidity role for $XRP.