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XRP community commentators, including top U.S. attorney John Deaton, discuss the potential valuation for Ripple following its IPO.
Notably, Ripple is again at the center of growing speculation about its potential valuation if it goes public. This speculation follows Donald Trump’s victory in the November 2024 U.S. presidential election and the anticipated resignation of SEC Chair Gary Gensler, known for his aggressive stance on crypto.
Ripple’s CEO, Brad Garlinghouse, has hinted that the company could reconsider an IPO, a prospect previously dismissed due to regulatory pressures.
Ripple Valuation Speculation
Nietzbux, a prominent XRP community commentator, recently presented a valuation model for Ripple if it IPOs. According to Nietzbux, Ripple could potentially trade at three times the value of its XRP holdings, similar to how MicroStrategy trades in respect to its net asset value.
Ripple’s massive XRP holdings alongside its intrinsic business value could set it up as a major public company. Nietzbux suggested that this structure could also reduce Ripple’s need to sell XRP. Notably, this would align the company’s incentives with XRP’s broader market performance.
Meanwhile, pro-crypto attorney and 2024 Massachusetts Senate candidate John Deaton expanded on these ideas, citing specific figures. The attorney referenced a previous analysis from market veteran Peter Brandt.
According to @PeterLBrandt (see 👇), if XRP breaks upwards out of its consolidation pattern (“half mast flag”), a $500B market cap is possible (NOTE: he does not say likely).
A $500B market cap equals a $8.72 XRP price. IF XRP reaches that valuation AND, IF ETH fails to rally,…
— John E Deaton (@JohnEDeaton1) January 7, 2025
As reported by The Crypto Basic, the market analyst suggested that if XRP breaks out of its current consolidation pattern, its market capitalization could potentially hit $500 billion.
While Brandt emphasized this scenario as possible rather than probable, such a market cap places XRP’s price at $8.72. Interestingly, Deaton pointed out that this valuation would elevate XRP above Ethereum’s current market cap of $444 billion, making it the second-largest crypto after Bitcoin.
Ripple’s XRP Holdings and Potential Impact
The U.S. attorney then highlighted that Ripple currently holds about 40 billion XRP in escrow. Specifically, this figure has dropped to 37 billion XRP following recent escrow releases, including the one for January 2025.
Deaton pointed out that these XRP tokens are not on Ripple’s balance sheet, differentiating it from companies like MicroStrategy that directly account for their crypto assets. At an XRP price of $8.72, the attorney suggests the value of Ripple’s holdings would grow to $348.8 billion.
Applying the valuation multiple used by MicroStrategy (3x its net asset value), Ripple could theoretically be worth over $1 trillion. Notably, this projection includes its XRP holdings and overall business value.
Deaton also called attention to Ripple’s recent buyback of $285 million in Series C shares at a valuation of $11-12 billion. He believes this buyback provided a 50% return on investment for Series C investors. According to Deaton, if XRP does reach $8, this move would demonstrate Ripple’s foresight.
However, the attorney confirmed that these are mere speculations based on available data, and there is no guarantee that XRP would even reach $8 or that Ripple’s valuation could hit $1 trillion. He also speculates that Ripple may consider an IPO by late 2025 or early 2026.