In the ever-evolving landscape of cryptocurrency, industry expert Rob Cunningham has shed light on an ambitious hypothesis where Ripple could reach a staggering $7 trillion valuation hinging on the price of XRP. Given that Ripple is the dominant holder of XRP, a sharp increase in its market price could significantly enhance the company’s overall worth.
Ripple’s Potential Path to a $7 Trillion Valuation Alongside an XRP Surge
According to a recent social media update, Cunningham theorizes that should XRP vault to $250, Ripple’s valuation could soar to an incredible $7 trillion. His analysis suggests that the value of Ripple’s immense XRP holdings could reach approximately $4.25 trillion at this price point, noting that Ripple retains about 17 billion XRP tokens, directly impacting its market capitalization.
This extraordinary valuation would place Ripple as significantly more valuable than established financial giants like Visa and Mastercard, by factors of 6.6 and 8.6 respectively. Furthermore, the projected valuation would represent close to 3.6% of the total global GDP, which currently stands at around $117 trillion.
Cunningham also emphasized that with XRP priced at $250, the entire market capitalization of XRP could potentially touch $15 trillion. Notably, Ripple’s 17 billion XRP holdings constitute approximately 28% of the circulating supply. He also pointed to legislative measures, such as the anticipated passage of the Clarity Act, as catalysts for growth.
Key Contributors to a $7 Trillion Valuation Beyond XRP’s Price
Cunningham elaborated on various elements that could push Ripple’s valuation towards the $7 trillion mark, stressing the importance of Treasury approval. Such a stamp of endorsement would facilitate global regulatory clarity for both XRP and the XRP Ledger (XRPL), positioning them as foundational components of an innovative monetary framework.
He proposed that if RLUSD and XRP established themselves as the primary settlement vehicles globally, they could further boost Ripple’s financial outlook. Notably, RLUSD has already seen a market cap of $1 billion and boasts a payment volume nearing $95 billion, with growth prospects looking robust. Additionally, Cunningham posits that the potential for XRP to transcend its identity as merely another cryptocurrency and become essential for global transactions could propel its price skyward.
Providing a more cautious perspective, he suggested an equity valuation range of between $1.3 trillion and $2.7 trillion for Ripple, noting that markets often impose a 60% to 80% discount on valuations heavily concentrated on a single asset, especially when considering the ramifications of an XRP price spike.
However, Cunningham also cautioned against political and regulatory risks that could hinder Ripple’s ambitions. If its platform were to become the standard settlement layer, it could attract government scrutiny and fiscal control measures. He pointed out that capital controls, unexpected taxes, or regulatory restructurings could substantially impact the projected $7 trillion valuation.
