Author: Bayberry Capital
Translation: TechFlow
The market continues to misjudge XRP because it does not truly understand what it is evaluating. It only sees a token, while ignoring the system behind the token.
For years, the market has used the wrong metrics to measure XRP. Traders focus on volatility, analysts chase headlines, but neither have delved into its underlying infrastructure. XRP is not an entertainment tool; it is a financial instrument designed to transfer value within global systems with precision, finality, and neutrality. Its price has yet to reflect its function because the world has not yet assigned the correct value to this function itself.
The Market Has Yet to Master How to Evaluate Infrastructure
Infrastructure is always easily misunderstood in its early stages. Investors often chase obvious growth while ignoring the foundations that support such growth. The same dynamic played out in the early days of the internet. Back then, companies building routers, networks, and data centers saw lackluster stock performance, while speculative capital poured into internet companies with no real output.
It was not until this infrastructure became indispensable that capital flowed back to the true builders. Today, XRP is in the same position. It is the underlying pipeline for the future financial era. The market sees a calm price chart and mistakenly assumes it is irrelevant. In reality, what the market is witnessing is the slow formation of an invisible network that will become a crucial pillar of global liquidity in the future.
Few Truly Understand the Real Function of XRP
XRP was not originally 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, clear regulatory frameworks, and deep technical integration. These processes take years to advance, not just a few weeks.
The market cannot price what it does not understand. It still compares XRP to speculative assets that rely on narrative cycles, when in fact XRP’s entire architecture is monetary, not promotional. The longer this misunderstanding persists, the greater the revaluation will be once utility becomes the focus.
Liquidity Utility Is Entirely Different from Market Sentiment
The path of utility adoption is completely different from market sentiment. The growth of liquidity infrastructure is quiet and continuous until it reaches a systemically necessary tipping point. At this stage, existing supply will not meet demand, and prices will rapidly adjust to reflect the new utility value.
Most traders have never seen this happen, as it is the opposite of what drives the retail market. The real adoption process is slow, silent, and ultimately definitive. When financial institutions settle real transaction volumes through distributed systems, this liquidity does not dissipate but deepens over time. The stability of XRP is not a weakness, but a true reflection of its current stage.
The Debate Over Supply Misses 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 escrow or held long-term, and the actual circulating volume used for global settlement is far lower than the surface number.
As transaction volumes expand and velocity increases, available liquidity tightens. This compression of circulating supply, combined with growing demand, is what leads to true price discovery. This is not speculation, but a matter of mechanism.
Regulation Lays the Framework for Utility
Traditional financial markets usually price in regulatory factors before they arrive, whereas in the digital asset space, regulation is often seen as an afterthought. However, as XRP’s legal status becomes clear, this regulatory clarity is a milestone. 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 a recognized financial channel. This misalignment is one of the most significant asymmetries in today’s digital asset space.
The Coming Wave of Tokenized Value
The world is on the edge of a brand-new financial structure, where real-world assets will be recorded on ledgers. Bonds, treasuries, currencies, and commodities will all be tokenized and exchanged digitally. For these systems to achieve interoperability, a neutral bridge asset capable of settling across networks is indispensable. XRP was designed precisely for this purpose.
As tokenized transaction volumes expand, bridge liquidity will become the new “oil” of global finance. Every on-chain asset flow will drive demand for a neutral settlement medium. This demand is structural, not driven by speculation, but by actual need.
The Low-Key Nature of Institutional Integration
The real adoption process is often quiet and unassuming. Ripple and its partners operate in regulated environments, prioritizing reliability over publicity. Pilot channels, enterprise solutions, and liquidity partnerships are often developed and quietly tested in private settings, only scaling up when functionality is perfected.
The retail market seeks public hype, while institutions focus on certainty. The infrastructure being laid today will only be reflected in price when it becomes a critical part of operations. By then, the market will realize that these years of silence were actually a period of construction.
Perspective Determines Cognition
The difference between speculators and investors is whether they can see through the present and gain insight into the future. XRP’s current market cap may seem large compared to other digital assets, but when measured against global settlement volumes, forex flows, and the projected scale of tokenized assets, it is negligible.
This mispricing stems from the market still viewing XRP as a trade, not a transformation. It is valued similarly to other cryptocurrencies, rather than as monetary infrastructure capable of facilitating trillions of dollars in global flows. When the perspective shifts from price charts to liquidity mechanisms, valuation models will change completely.
XRP is undervalued because the market still sees it as an event, not a system. The market has yet to realize that value accumulation in financial architecture is slow, but once mature, it erupts rapidly.
When distributed system settlement 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 recognize one that has long existed—one that has quietly laid the foundation for the next generation of value transfer.
