Ripple CEO Brad Garlinghouse has announced that the firm’s earlier evaluated valuation of $11 billion is not correct, citing the company’s XRP holdings and rising market demand for its blockchain solutions. The announcement follows developments in Ripple’s financial position and the broader cryptocurrency market.
XRP Holdings Transform Ripple’s Financial Outlook
During an interview, Garlinghouse informed that Ripple’s XRP holdings now overreach $100 billion in value. This honors a change in Ripple’s financial metrics compared to its last value of $11 billion, recorded during a $300 million share buyback in early 2024.
The CEO noted that Ripple’s private market trading values the business at a discount compared to similar firms, including MicroStrategy, which trades at a premium to its net asset value. Ripple’s financial revaluation aligns with XRP’s impressive market performance, further solidifying the company’s position in blockchain technology.
XRP Price and Market Trends
At the time of writing, Coinglass data indicates that the price of XRP stood at $2.40, reflecting a sharp increase from earlier periods. Trading volumes experienced spikes, with a notable surge aligning with the price peak in early January, reaching $4.54 billion.
Volume and price movements appear closely correlated, indicating heightened trading activity during significant price increases. Market dynamics, including discussions around a potential U.S.-based blockchain reserve and a cryptocurrency ETF launch, have contributed to XRP’s growing appeal among traders and institutions.
Ripple Expands Strategic Offerings
Despite XRP’s market success, Ripple remains focused on its key business of providing blockchain solutions to financial institutions. Garlinghouse repeated Ripple’s emphasis on products like custody and cross-border payments tailored for banks, payment providers, and corporations.
Ripple’s acquisition of custody firm Metaco has enhanced its ability to deliver institutional-grade solutions. Additionally, the planned launch of Ripple USD (RLUSD), a stablecoin backed by a New York DFS license, is expected to complement XRP’s liquidity and utility.
