Ripple CEO Brad Garlinghouse has declared that Ripple’s previous valuation of $11 billion is now “very outdated,” following a notable surge in XRP price and increased demand for Ripple’s blockchain solutions.
Speaking during a recent interview, Garlinghouse cited the company’s substantial holdings of XRP, now valued at over $100 billion, as a key factor altering Ripple’s valuation outlook.
Ripple CEO Brad Garlinghouse Calls $11B Valuation Outdated
According to Ripple CEO Brad Garlinghouse the company now has more than $100 billion worth of XRP tokens. This development changes the valuation proposition of the blockchain infrastructure company dramatically. The CEO noted that Ripple’s trading in private markets has been much cheaper to the net asset value of the company than other companies that are linked to cryptocurrencies such as MicroStrategy.
“The total value of the XRP we hold is now greater than $100 billion,” said Garlinghouse. He also compared Ripple’s valuation metrics with MicroStrategy noting that the latter trades at a premium to its assets. ”Ripple has been trading in the private markets at a discount while MicroStrategy has trading at 3x premium to its net asset value,” he said.
Ripple was last valued at $11 billion in early 2024 when the company bought back $300 million worth of shares. Nevertheless, Ripple CEO Brad Garlinghouse stated that such an estimate is no longer relevant to the current financial position of Ripple, thanks to the increasing XRP price and institutional adoption.
XRP Price Growth Attracts Attention Amid Market Trends
XRP price has also seen a significant rise in value, it has risen five times its value before the election periods in late 2024. Ripple’s token has had increased liquidity and trading volume, sometimes even outperforming Bitcoin, as per data from FalconX.
This upsurge is in line with other developments within the cryptocurrency market such as the high probability of a crypto ETF launch and debate on a U.S. based blockchain reserve. Crypto analyst Peter Brandt noted in his recent analysis of XRP’s technical chart that if the current bullish flag pattern would be fulfilled, XRP market cap may hit $500 billion.
Furthermore, the SuperTrend indicator has just turned bullish on the XRP 12-hour chart for the first time in several months. Analyst Ali Charts pointed out that “The last time the SuperTrend indicator changed direction to the bullish side, XRP rose by 470%.”
Ripple CEO Stance on Company Strategic Focus
Although XRP is gaining popularity in the market, Ripple’s main business is still centered on offering blockchain technologies to financial companies. In the interview, Ripple CEO Brad Garlinghouse restated his company’s focus on the B2B sector including banks, payment providers, and corporates, where Ripple is offering solutions like custody and cross-border payments.
Recently, Ripple announced that it would launch its stablecoin called Ripple USD (RLUSD) with the license from the New York Department of Financial Services (NYDFS). Garlinghouse stressed that the RLUSD will leverage XRP rather than replace it, increasing its liquidity, and opening more possibilities for the utilization of Ripple’s DEX and automated market maker (AMM) functionalities.
The acquisition of Switzerland-based custody firm Metaco which was completed about 18 months ago has also put Ripple in a vantage position to offer its institutional products. The CEO was upbeat on the increased demand of the company’s custody services especially from Tier 1 banks.
Changing Regulatory Environment Fuels Optimism
Ripple’s growth has been supported by changing perceptions in the legal environment. Garlinghouse claimed that the previous several months marked a ‘turning point’ due to the exit of SEC Chairman Gary Gensler and the chance for regulatory certainty under the new administration.
As a result of the recent changes in the US government’s stance with regard to cryptocurrency innovation, Ripple CEO Brad Garlinghouse said, “The winds have changed.”
Recently, he also stated that 95% of Ripple’s customers are outside the United States, but he expects the interest to return in the United States in the next few months.
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