Why Chainlink, Not XRP, Will Dominate the Coming Wave of Tokenized Assets

Chainlink enables tokenized assets by creating secure links between real-world data and blockchain smart contracts. This connection improves liquidity and transparency while making transactions more reliable.

Ripple, through the XRP Ledger, uses its fast and scalable network to settle transactions quickly. This makes it useful for moving tokenized assets across borders.

Together, both technologies are helping drive a shift toward digital, fractional ownership of real-world assets, giving people around the world access through blockchain networks.

However, according to crypto analyst Zach Rynes, known as ChainLinkGod on X, Chainlink has a much stronger position in this market. In his recent analysis, he compared the reach, market share, and institutional relationships of both projects.

His conclusion is that LINK is better placed than XRP to benefit from the trillions of dollars in tokenized assets expected to move onchain in the coming years.

Why Zach Rynes Says LINK Has the Advantage Over XRP

Zach Rynes looked closely at current data from DefiLlama. He noted that the XRP Ledger’s onchain DeFi total value locked is about $85 million from just nine apps. Most of this comes from the XRPL DEX. This puts it at rank 54 among blockchains by total value locked.

Chainlink’s numbers tell a different story. Across all the blockchains it works with, Chainlink secures about $91 billion in onchain DeFi value from 452 applications. It is ranked number one in its category, holding a dominant 68% market share in DeFi and an even higher 84% within Ethereum’s DeFi ecosystem.

Zach Rynes pointed out that this means Chainlink secures more than 1,000 times the capital in onchain DeFi markets than the XRPL does. What makes this even more striking is that XRP’s market cap is more than 12 times larger than LINK’s. This gap suggests to him that LINK price still has room to grow as tokenized asset adoption accelerates.

Institutional Reach and Real-World Applications

In his tweet, Zach Rynes also stressed the depth of Chainlink’s institutional partnerships. The platform is not only used by leading DeFi apps such as Aave, but it is also connected to some of the world’s biggest financial names.

These include Swift, DTCC, Euroclear, J.P. Morgan, Mastercard, the Central Bank of Brazil, UBS, SBI, ANZ, and Fidelity International.

Many of these institutions are already building systems for tokenized assets, and Chainlink’s technology powers the infrastructure they use. Chainlink is more than just a data oracle service.

It offers an all-in-one platform that covers onchain data delivery, cross-chain interoperability, automated compliance, privacy-preserving computation, and connections to legacy systems. It even provides ready-made enterprise tools for tasks like Digital Transfer Agent services, Delivery vs Payment settlement, and automated compliance checks.

Read Also: How Much Could 1,000 Tokens of JasmyCoin, Kaspa, and XRP Be Worth by 2030

While Zach Rynes believes the XRP Ledger could grow in adoption, he argues that it still will not match Chainlink’s positioning for institutional tokenization.

The LINK ecosystem is already deeply embedded in the systems that will handle these assets, giving it a major head start. And with XRP already valued at $188 billion compared to LINK’s $14 billion, the upside potential for LINK tokens may be much greater if this market develops as expected.

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Temitope Olatunji
Temitope Olatunji

Temitope is a seasoned writer with over four years of experience. He specializes in Web3 and FinTech topics and enjoys creating content in these areas. He holds both a bachelor's and master's degree in Linguistics. When not writing, he trades forex and plays video games.

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