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Rob Cunningham of the KUWL Show recently shared how Ripple could one day hold a valuation reaching the $7 trillion mark based on its XRP holdings.
Notably, he based his analysis around a future where XRP trades at $250, the U.S. government grants full regulatory clarity through the Clarity Act, and the XRP Ledger and RLUSD stablecoin operate as major parts of a new global monetary system.
In a recent assessment on X, Cunningham first highlighted Ripple’s current position. He explained that Ripple’s most recent funding round, backed by firms such as Pantera, Fortress, Brevan Howard, Citadel, and Galaxy, valued the company at about $40 billion.
This figure is based on the strength of Ripple Payments, the RLUSD stablecoin business, its treasury and custody services, and all software connected to the XRP Ledger. It also factors in early regulatory clarity, but not any role in global monetary infrastructure.
Conditions for a Ripple Valuation Spike to $7T
Cunningham then presented the assumptions behind his projection. Specifically, he predicted a scenario where the U.S. “Clarity Act” and direct support from the Treasury give XRP and the XRP Ledger firm legal status as important components of a new monetary framework.
In this scenario, XRP rises sharply from today’s level of roughly $2 and about $120-130 billion in market cap to $250 per token. Moreover, Ripple also ends up with 17 billion XRP after future changes to escrow and ownership structures.
Cunningham added that RLUSD and XRP could also work together as the main rails for a digital U.S. dollar worldwide. He noted that RLUSD already holds about $1 billion in market cap and has processed more than $95 billion in payments.
According to his analysis, if XRP reaches $250 and Ripple controls 17 billion tokens, Ripple’s holdings would be worth $4.25 trillion. The market pundit then compared this figure to major financial companies, saying it would more than triple the combined valuations of Visa and Mastercard.
He also pointed out that the full XRP market would climb to about $15 trillion, and Ripple’s share alone would represent more than 3% of global GDP, which currently sits near $117 trillion.
Three Market Scenarios Around Ripple’s Valuation
From there, Cunningham assessed how markets might value Ripple in this scenario. Notably, he shared three ranges. His most conservative band assumed that markets heavily discount Ripple’s XRP exposure by as much as 60-80% because of political, systemic, and concentration risks.
Even with this, he estimated that Ripple’s valuation could sit between $1.3 trillion and $2.7 trillion once the market factors in the payments, stablecoin, and infrastructure business, which Cunningham said could reach $500 billion to $1 trillion based on comparisons to Visa and Mastercard.
Meanwhile, in his mid-range scenario, the markets could treat Ripple as a global financial infrastructure company and credit it with 50-70% of the $4.25 trillion XRP value.
When he added another $1 trillion to $1.5 trillion for the underlying payments and settlement network, he arrived at a range of roughly $3.1 trillion to $4.5 trillion. At this level, Cunningham said Ripple would surpass every public company worldwide and act more like a global monetary utility than a traditional fintech firm.
He then presented an extreme scenario where markets give Ripple nearly full value for its XRP and add another $1 trillion to $3 trillion for its financial rails. In this case, Ripple could push beyond $7 trillion.
However, Cunningham pointed out some important caveats. First, he said no one can predict whether XRP ever reaches $250. He also said that if the XRP Ledger ever becomes a global settlement infrastructure, regulators will treat Ripple differently from a normal company. According to him, investors should not treat this valuation model as investment advice.