Cryptocurrency expert Rob Cunningham outlined a scenario in which Ripple could reach a $7 trillion valuation based on XRP price. This cryptocurrency company is notably the largest holder of XRP, so a significant raise in the altcoin’s price could raise the company’s valuation.
Ripple could reach a valuation of $7 trillion with XRP priced at $250
In Post XCunningham predicted that Ripple could reach a valuation of $7 trillion if the price of XRP rises to $250. In particular, the expert outlined a scenario in which company’s position in XRP could account for $4.25 trillion of its valuation. He claimed that Ripple held 17 billion XRP, which would be $4.25 trillion at the projected price of $250 per XRP.
Cunningham noted that this trillion-dollar valuation of Ripple, based on XRP price raise to $250, would make the company 6.6 times more valuable than Visa and 8.6 times more valuable than Mastercard. The $4.25 trillion also represents 3.6% of global GDP, which is $117 trillion.
Based on the XRP price of $250, the expert noted that the total market value of XRP will be $15 trillion. Ripple’s holding of 17 billion XRP represents 28% of the circulating supply. Meanwhile, Cunningham listed other factors that could push the company to a $7 trillion valuation, including the transition CLARITY Act.
Other factors that would contribute to a $7 trillion valuation
In addition to the raise in XRP prices to $250 and the CLARITY Act, Cunningham cited the Treasury’s approval of Ripple’s operations as another factor. The expert explained that the Treasury’s approval would mean that XRP i XRP Ledger (XRPL) would gain global regulatory clarity as a fundamental infrastructure layer of the modern monetary system.
He also outlined a scenario in which RLUSD and XRP will become the default dollar rails around the world, which would also contribute to Ripple’s estimated valuation of $7 trillion. The expert noted that the market capitalization of RLUSD is already $1 billion and the payment volume is $95 billion and growing. Cunningham also pointed out that the price of XRP could easily rise to $250 as this scenario positions XRP as a global settlement rather than just another crypto asset.
The expert also gave a “conservative” value for the payments company’s equity of between $1.3 trillion and $2.7 trillion. He noted that markets could apply a 60% to 80% discount to a $4.25 valuation given the price of XRP has risen to $250 due to its high concentration in a single asset.
Cunningham also made some reference to political risk Ripple payment system becomes the default settlement queue, governments may want to influence their actions. He also cited possible capital controls, windfall taxes or forced restructurings as other factors that could lower Ripple’s projected $7 trillion valuation.
Featured image from Freepik, chart from Tradingview.com
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