Pumpius (@pumpius), a strong advocate for XRP, sparked debate with his provocative claim that XRP reaching $10,000 is not hype but a calculated response to the ongoing economic reality.

In a thread on X, he outlined a detailed argument focused on concerns about global debt, the depreciation of fiat currencies, the rise of asset tokenization, and Ripple's expanding organizational reach.

Theo Pumpius, the long-term decline in the purchasing power of the US dollar, especially since this currency detached from the gold standard in 1971, has set the stage for digital assets to play a central role in future payment solutions.

He emphasized that the US national debt has surpassed $34 trillion, with annual interest payments now exceeding $1 trillion. Under these conditions, he argued, the Federal Reserve will be forced to continue expanding the money supply, further distorting traditional asset valuations.

In this context, he believes that XRP could emerge as a highly effective bridge asset. Its ability to settle transactions quickly and cheaply could help it achieve significant standing as trust in the fiat system continues to erode.

Tokenizing real-world assets and the growing ecosystem

One of the more compelling aspects of Pumpius's support for XRP is the anticipated growth of tokenized real-world assets. He points out the fact that major financial institutions like JPMorgan, BlackRock, and Citi are actively investing in blockchain-based tokenization frameworks.

According to estimates from several analysts, there could be between $16 trillion and $30 trillion in tokenized real-world assets by the end of this decade. The Dubai Land Department has made significant progress in this area with tokenized land titles on the XRP Ledger (XRPL).

Pumpius contends that XRP's fast settlement capabilities, DEX features, interoperability, and other functionalities position it as a core factor in the crypto economy. Ripple's ecosystem has stretched across over 300 financial institutions, and Ripple Payments (formerly On-Demand Liquidity) eliminates pre-funded accounts.

The launch of the RLUSD stablecoin and investments in custody solutions also highlight Ripple's institutional focus and support for Pumpius's bullish outlook.

Challenging conventional valuation models

Pumpius's boldest claim centers on monetary velocity, as he sees XRP supporting segments of the foreign exchange market, tokenized assets, and public debt. With high revenue and a fixed supply, he argues that XRP could justify a much higher valuation, regardless of traditional market capitalization logic.

Critics argue that such valuations are unrealistic, but supporters assert that XRP is infrastructure, not a speculative asset. Pumpius believes that overlooking the shift in institutional adoption and global liquidity demand means missing the deeper transformation underway and that those who cannot see XRP at $10,000 have been mispriced.