Ripple CEO Brad Garlinghouse Calls $11B Valuation Outdated Amid XRP Price Surge

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Ripple‘s CEO, Brad Garlinghouse, stated that the earlier estimation of Ripple’s worth at $11 billion is now considered out-of-date due to a significant increase in XRP‘s value and growing interest in Ripple’s blockchain services.

In a recent interview, Garlinghouse pointed out Ripple’s large XRP assets, currently worth more than $100 billion, as a significant element influencing the potential increase in Ripple’s market value.

Ripple CEO Brad Garlinghouse Calls $11B Valuation Outdated

As a researcher, I’ve just learned an interesting piece of news: According to Brad Garlinghouse, CEO of Ripple, the company now holds over $100 billion in XRP tokens. This substantial increase significantly alters the valuation landscape for Ripple’s blockchain infrastructure. Intriguingly, Garlinghouse highlighted that Ripple’s private market trading has been less costly compared to the net asset value of the company relative to other cryptocurrency-tied entities like MicroStrategy. This could potentially set Ripple apart in terms of cost efficiency within the cryptocurrency sector.

Garlinghouse stated, “The combined worth of our XRP holdings now exceeds $100 billion.” He further mentioned that Ripple’s valuation is similar to MicroStrategy’s, but the latter is currently trading at a 3-fold price premium compared to its net asset value. In simpler terms, Ripple has been valued lower in private markets while MicroStrategy is being traded at a higher price relative to its actual assets.

In early 2024, Ripple’s valuation was approximately $11 billion after the company repurchased shares worth $300 million. However, according to Ripple CEO Brad Garlinghouse, this assessment no longer accurately reflects Ripple’s current financial standing due to the surge in XRP price and growing institutional acceptance.

XRP Price Growth Attracts Attention Amid Market Trends

The worth of XRP has experienced a substantial increase, climbing approximately fivefold compared to its previous values prior to the election periods in late 2024. Ripple’s token has displayed enhanced liquidity and trading activity, occasionally surpassing Bitcoin in performance, according to FalconX data.

This increase aligns with other trends happening in the cryptocurrency sector, including the strong possibility of a crypto ETF being launched and discussions about establishing a U.S.-based blockchain reserve. According to crypto expert Peter Brandt’s latest analysis on XRP’s technical chart, if the current bullish flag pattern plays out as expected, the market value of XRP could potentially reach an impressive $500 billion.

Moreover, it’s worth noting that the SuperTrend indicator has switched to a bullish stance on the XRP 12-hour chart for the first time in quite a while. As Analyst Ali Charts highlighted, when this indicator previously shifted to a bullish outlook, the value of XRP experienced a significant increase of approximately 470%.

Ripple CEO Stance on Company Strategic Focus

Despite rising market attention towards XRP, it’s important to note that Ripple primarily focuses on providing blockchain technology services to financial institutions. In a recent interview, Ripple CEO Brad Garlinghouse reaffirmed their commitment to the B2B sector, particularly banks, payment providers, and corporations. Their offerings in this space include solutions for custody and cross-border payments.

More recently, Ripple unveiled plans to debut their stablecoin named Ripple United States Dollar (RLUSD), which has been granted a license by the New York Department of Financial Services (NYDFS). In this context, Garlinghouse emphasized that the introduction of RLUSD does not intend to supplant XRP, but rather enhance its liquidity. This development also expands the potential uses of Ripple’s Decentralized Exchange (DEX) and Automated Market Maker (AMM) features.

18 months ago, the purchase of Swiss custody firm Metaco enhanced Ripple’s strategic stance to provide its institutional-grade products. The CEO expressed optimism about the growing interest in Ripple’s custodial services, particularly from top-tier banks, indicating a surge in demand for these services.

Changing Regulatory Environment Fuels Optimism

Ripple’s expansion has been fueled by shifts in the legal landscape. According to Garlinghouse, the recent departure of SEC Chair Gary Gensler and the emergence of regulatory clarity under the new government signified a significant ‘turning point’.

Due to the latest shift in the U.S. government’s approach towards cryptocurrency advancements, Ripple CEO Brad Garlinghouse commented, “The direction has turned a new leaf.

Lately, it was mentioned that approximately 95% of Ripple’s clients reside outside the U.S., however, there is anticipated renewed interest from American investors within the upcoming months.

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2025-01-07 04:42