Speculation around a potential Ripple IPO has intensified following Circle’s explosive debut on the New York Stock Exchange. According to attorney John Deaton, Ripple could reach a $100 billion valuation if it follows a similar path to Circle, whose stock surged over 600% since listing.
Circle is currently worth around $66.2 billion, compared to the market capitalization of its USDC stablecoin, which is the same amount: $61.3 billion. This discrepancy between the firm’s equity value and that of its product has aroused concern in the cryptosphere.
Deaton noted that Ripple’s abundance of reserves and partnership network could also help it attract greater attention on the open market.
The current escrow balance in Ripple accounts is 36.2 billion XRP, which has a nominal value of $78.8 billion at the current price of tokens, which is $2$.
Besides such reserves, Ripple runs a universal enterprise blockchain system, partnering with banks and the finance sector. These facilities and their infrastructure provide a good base for the high public market value.
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Market Sentiment Pushes Ripple Toward Possible Public Debut
While Ripple was last privately valued at $11.3 billion, the changing market landscape may no longer reflect that number. Deaton pointed out that Circle’s valuation success could encourage Ripple’s executives to reconsider their IPO stance.
The attorney also hinted that the capital markets are now rewarding crypto-native firms at levels unseen in past years.
In February of this year, Ripple President Monica Long said that there was nothing planned for an IPO in 2025. CEO Brad Garlinghouse further remarked that the company could go out with a public listing, but it was not their priority at the time.
Nevertheless, the emergence of Circle at a massive pace has created a new force that may put pressure on Ripple to make a move.
The XRP used by Ripple is finally beginning to get some mainstream coverage, and one area where it is entering the front is the possibility of an ETF listing. This wave, along with the growing interest of investors in blockchain companies, may precondition Ripple’s reconsideration of its position.
Since Circle has created a new valuation benchmark, the notion of Ripple becoming a publicly traded company is increasingly difficult to rule out. With reasonable reserves, a wide network to provide a sense of decentralization, and a change in the market’s tides, Ripple looks poised to hit a valuation of a hundred billion.
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