Crypto pundit Rob Cunningham has outlined a state of affairs the place Ripple may obtain a $7 trillion valuation based mostly on the XRP price. The crypto agency is notably the biggest XRP holder, which is why a major surge within the altcoin’s worth may enhance the corporate’s valuation.
Ripple May Hit A $7 Trillion Valuation With An XRP Value Of $250
In an X post, Cunningham predicted that Ripple may hit a $7 trillion valuation if the XRP worth have been to rally to $250. Particularly, the pundit outlined a state of affairs the place the company’s XRP position may account for $4.25 trillion of its valuation. He claimed that Ripple owned 17 billion XRP, which might quantity to $4.25 trillion at $250 per XRP, the projected worth.
Cunningham famous that this trillion-dollar valuation for Ripple, based mostly on an XRP price surge to $250, would make the corporate 6.6x instances extra priceless than Visa and eight.6x instances extra priceless than Mastercard. $4.25 trillion additionally represents 3.6% of the world’s GDP, which stands at $117 trillion.
Based mostly on an XRP worth of $250, the pundit famous that the overall XRP market worth could be $15 trillion. Ripple’s 17 billion XRP holdings signify 28% of the circulating provide. In the meantime, Cunningham listed different components that might drive the agency to a $7 trillion valuation, together with the passage of the CLARITY Act.
Different Components That Would Contribute To A $7 Trillion Valuation
Along with the XRP worth surge to $250 and the CLARITY Act, Cunningham listed the Treasury’s approval of Ripple’s enterprise as one other issue. The pundit defined that the Treasury approval would imply that XRP and XRP Ledger (XRPL) would get world regulatory readability as a core infrastructure layer for the brand new financial system.
He additionally outlined a state of affairs the place RLUSD and XRP grow to be the default U.S. greenback rails globally, which might additionally contribute to Ripple’s projected $7 trillion valuation. The pundit famous that RLUSD already has a $1 billion market cap with $95 billion in cost quantity and is rising. Cunningham additionally indicated that the XRP worth may simply rally to $250, as this state of affairs positions XRP for a worldwide settlement position moderately than simply one other crypto asset.
The pundit additionally gave a “conservative” fairness worth of $1.3 trillion to $2.7 trillion for the cost agency. He famous that markets may apply a 60% to 80% low cost to the $4.25 valuation, given an XRP worth surge to $250 because of the excessive focus in a single asset.
Cunningham additionally alluded to the political danger, as if Ripple’s payment system turns into the default settlement rail, governments could need a say of their operations. He additionally outlined attainable capital controls, windfall taxes, or compelled restructurings as different components that might scale back Ripple’s projected $7 trillion valuation.
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