Ripple Valuation Tied to XRP Price Could Hit $93B
Global investment bank Houlihan Lokey’s report highlights that Ripple’s corporate valuation is directly linked to the market price of XRP. The Feb 2024 study models valuations under three scenarios at $0.60 per XRP—from $4.5 billion (secondary-market pricing) to $28.6 billion (market-price alignment). Under FASB’s ASU 2023-08, fair-value reporting of digital assets would bring Ripple’s balance-sheet valuation in line with token market value.
Updating the model with today’s XRP price of $2.44 and Ripple’s 40 billion XRP holdings yields a theoretical valuation of $93 billion, versus the company’s recent $500 million private raise at a $40 billion valuation. The analysis underscores that shifts in the XRP price could meaningfully alter Ripple’s corporate worth, reinforcing the link between token performance and corporate valuation.
Bullish
Houlihan Lokey’s analysis underlines how XRP price movements directly affect Ripple valuation. This clear link is likely to boost trader confidence in XRP’s upside potential. Historically, events that tie token fundamentals to corporate or institutional adoption—such as Bitcoin ETF approvals—have led to sharp price rallies. In the short term, renewed attention on Ripple’s balance sheet could drive increased XRP buying. Over the long term, fair-value accounting and institutional interest may support sustained price growth.