Ripple’s possible valuation now following an IPO as Ripple CEO might revisit the IPO discussions with potential to enhance its market position.
The XRP community is buzzing with discussions about Ripple’s possible valuation following a potential initial public offering (IPO).
Notably, prominent figures, including renowned U.S. attorney John Deaton, are weighing in on what this could mean for the cryptocurrency and its parent company.
Recent Political Developments and Their Impact on Ripple
The spotlight on Ripple has intensified amid the political landscape, particularly after Donald Trump’s victory in the November 2024 U.S. presidential election.
This shift could bring significant changes to regulatory approaches, especially with the anticipated resignation of SEC Chair Gary Gensler, who has adopted a stringent stance on cryptocurrency regulations.
Such changes could pave the way for Ripple to reconsider its IPO plans—a notion that had previously been dismissed due to ongoing regulatory challenges.
Ripple’s CEO Hints at Possible IPO Reconsideration
Brad Garlinghouse, the CEO of Ripple, has hinted that the company might revisit the IPO discussion, indicating that the evolving regulatory environment could make it a more viable option.
The prospect of going public could provide Ripple with opportunities to unlock value and enhance its market positioning.
Insights from the XRP Community
Nietzbux, a notable commentator within the XRP community, recently shared a valuation model that suggests Ripple could potentially trade at three times the value of its XRP holdings.
This model draws parallels with how MicroStrategy’s shares are valued relative to its net asset value.
Given Ripple’s significant XRP holdings, this could position the company to emerge as a leading public entity, while also reducing the necessity for it to sell XRP in the market.
This alignment of interests could prove beneficial for both Ripple and the broader XRP ecosystem.
John Deaton’s Analysis and Market Predictions
Expanding on these valuation projections, attorney John Deaton—who is also a candidate for the Massachusetts Senate in 2024—referenced insights from market veteran Peter Brandt.
Brandt previously indicated that if XRP were to break free from its current consolidation phase, its market capitalization could potentially soar to $500 billion.
While he emphasized that this scenario is more aspirational than guaranteed, such a market cap would elevate XRP’s price to approximately $8.72.
This would position XRP as the second-largest cryptocurrency by market capitalization, surpassing Ethereum’s current valuation of about $444 billion.
Ripple’s XRP Holdings: A Key Factor in Valuation
Deaton further highlighted that Ripple currently retains around 40 billion XRP in escrow.
Following recent releases, this figure has decreased to 37 billion XRP, with the latest release set for January 2025.
Importantly, these XRP tokens are not recorded on Ripple’s balance sheet, distinguishing the company from others like MicroStrategy, which directly accounts for its crypto assets.
At the projected XRP price of $8.72, Ripple’s holdings would amount to an impressive $348.8 billion.
If Ripple were to apply the same valuation multiple as MicroStrategy—three times its net asset value—the company could be valued at over $1 trillion.
This figure would encompass both its XRP holdings and its intrinsic business value.
Recent Financial Moves and Future Prospects
In addition to these projections, Deaton noted Ripple’s recent buyback of $285 million in Series C shares, which was carried out at a valuation of between $11 and $12 billion.
He believes this maneuver has yielded a significant return on investment for Series C investors.
Should XRP indeed reach the projected price of $8, this strategic decision would underscore Ripple’s insightful approach to capital management.
Despite these intriguing possibilities, Deaton cautioned that these assessments are speculative and based on the data currently available.
There’s no certainty that XRP will reach the anticipated $8 mark, nor is there a guarantee that Ripple’s valuation will hit the $1 trillion milestone.
He speculates that Ripple may seriously consider an IPO by late 2025 or early 2026, depending on how the market and regulatory environments evolve.
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