Ripple CEO Brad Garlinghouse has declared the company's previous $11 billion valuation "very outdated" following a significant XRP price surge and heightened demand for Ripple's blockchain solutions. In a recent interview, Garlinghouse highlighted Ripple's substantial XRP holdings—now exceeding $100 billion—as a key factor redefining the company's valuation.
Ripple’s Valuation Shift: Key Factors
Garlinghouse emphasized that Ripple’s private market trading has historically been undervalued compared to its net asset value, unlike crypto-linked firms such as MicroStrategy, which trade at a premium.
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Key points:
- Ripple’s XRP holdings now exceed $100 billion.
- Private market valuations lag behind asset value, unlike competitors.
- The $11 billion valuation from early 2024 no longer reflects current financials.
XRP Price Surge and Market Impact
XRP’s price has surged 5x since late 2024, outpacing Bitcoin in liquidity and trading volume at times, per FalconX data. Analysts attribute this growth to broader crypto market trends, including potential ETF launches and regulatory shifts.
Notable analyst predictions:
- Peter Brandt: A bullish flag pattern could propel XRP’s market cap to $500 billion.
- Ali Charts: The SuperTrend indicator’s bullish turn previously preceded a 470% XRP rally.
Ripple’s Strategic Focus: Beyond XRP
While XRP gains attention, Ripple remains focused on B2B blockchain solutions for financial institutions. Recent developments include:
- Launch of NYDFS-licensed stablecoin RLUSD, designed to complement XRP liquidity.
- Acquisition of Swiss custody firm Metaco, enhancing institutional offerings.
Garlinghouse noted that 95% of Ripple’s clients are outside the U.S., but anticipates renewed domestic interest amid regulatory clarity.
Regulatory Optimism Under New Leadership
Garlinghouse cited a "turning point" with Gary Gensler’s exit and pro-crypto policies under the new administration. “The winds have changed,” he said, pointing to growing institutional adoption.
FAQ Section
Q: Why does Ripple’s CEO consider the $11B valuation outdated?
A: Due to XRP’s price surge and Ripple’s $100B+ XRP holdings, which dramatically increase net asset value.
Q: How has XRP performed recently?
A: XRP rose 5x since late 2024, with analysts predicting further gains if bullish patterns hold.
Q: What’s Ripple’s core business focus?
A: Providing blockchain solutions (e.g., cross-border payments, custody) to financial institutions, not just XRP trading.
Q: How does RLUSD affect XRP?
A: It’s designed to boost XRP’s utility in Ripple’s DEX and AMM systems, not replace it.
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