"Ripple CEO Brad Garlinghouse Declares $11 Billion Valuation of Ripple Outdated Amid Soaring XRP Demand"

Ripple CEO Brad Garlinghouse recently stated that the company’s previous valuation of approximately $11 billion is now significantly out of date, particularly in light of a recent surge in the price of XRP and a growing market interest in Ripple’s blockchain solutions. During a detailed interview, Garlinghouse attributed this transformation in financial perception to the substantial increase in the value of XRP, which reportedly exceed $100 billion.

Garlinghouse emphasized that the current market dynamics, including Ripple’s substantial XRP holdings, merit a reevaluation of the company’s worth. Specifically, he explained that Ripple’s shares are trading at a notable discount compared to their intrinsic values when juxtaposed against other cryptocurrency-related firms, such as MicroStrategy, which trades at a substantial premium.

“The total market value of the XRP we manage is now greater than $100 billion,” Garlinghouse announced, highlighting that recent private market trading has not only been undervalued but also reflects a significant departure from the more favorable trading conditions faced by competitors like MicroStrategy, which trades at approximately three times its net asset value.

Ripple’s last official valuation was recorded early in 2024, when the company repurchased $300 million worth of shares. Garlinghouse argues that this valuation does not accurately represent Ripple’s current financial positioning, which benefits from the rising price of XRP and increased adoption by institutional players.

The market has also witnessed a robust increase in XRP’s price, now reportedly five times greater than its value prior to the late 2024 election periods. According to data from FalconX, the liquidity and trading volume of Ripple’s token have surged, occasionally surpassing bitcoin in market activity.

This rapid increase in value aligns with broader trends within the cryptocurrency sector, including the anticipated launch of exchange-traded funds (ETFs) and active discussions surrounding a blockchain reserve in the U.S. Cryptocurrency analyst Peter Brandt remarked that should XRP’s current bullish patterns sustain, its market capitalization could potentially expand to around $500 billion.

In addition to this positive trend, recent technical analyses have indicated promising signals for XRP. Notably, the SuperTrend indicator transitioned to a bullish outlook on XRP’s 12-hour chart for the first time in several months. Analyst Ali Charts noted, “The last time the SuperTrend changed direction towards the bullish side, XRP experienced a stunning 470% increase.”

Even with XRP gaining traction in the marketplace, Garlinghouse reaffirmed Ripple’s primary focus on providing blockchain technology solutions for financial institutions. He reiterated that the company’s endeavors are principally directed towards the business-to-business sector, which encompasses banks, payment processors, and enterprises—highlighting Ripple’s products like custody solutions and cross-border payment systems.

Ripple has also unveiled plans to launch its stablecoin, called Ripple USD (RLUSD), with approval from the New York Department of Financial Services. Garlinghouse clarified that RLUSD would utilize XRP rather than replace it, which is expected to further enhance liquidity and broaden the functional possibilities of Ripple’s decentralized exchange (DEX) and automated market maker (AMM) functionalities.

The acquisition of Switzerland-based custody solutions firm Metaco about 18 months ago has strengthened Ripple’s capacity to offer institutional-grade products. Garlinghouse expressed optimism regarding the heightened interest in the company’s custody services from Tier 1 banks.

Moreover, recent shifts in regulatory attitudes regarding cryptocurrency are fueling optimism for Ripple. Garlinghouse noted that the past several months represent a transformative phase, especially following the departure of SEC Chair Gary Gensler, which opens the door for potential regulatory clarity under new leadership.

According to Garlinghouse, “The winds have changed” concerning the governmental approach to cryptocurrency innovation. Presently, he indicated that while 95% of Ripple’s client base is located outside the United States, he anticipates a resurgence of interest within the U.S. in the upcoming months, signaling a potentially favorable outlook for Ripple and its offerings in the near future.

As XRP continues to soar in value and institutional interest builds, Ripple’s future appears promising, with strategy and adaptability at the forefront of its ongoing evolution in the dynamic landscape of blockchain technology and cryptocurrency.