The Increasing Likelihood of Ripple’s IPO
The chances of Ripple initiating an initial public offering (IPO) seem to be growing as the company edges closer to resolving its lawsuit with the SEC. There’s optimism about potential IPOs, and speculation has begun to circulate, particularly since Ripple is a key player in the cryptocurrency sector. John Deaton, a prominent lawyer and community figure supportive of XRP, suggests that Ripple’s valuation could exceed $100 billion.
Deaton’s Valuation Projection for Ripple
Deaton’s commentary follows the recent success of Circle, the company behind the USDC stablecoin. The fortunes of many crypto firms have surged, with some jumping from an initial $5 billion valuation post-IPO to over $63 billion today.
While responding to a discussion on X (formerly Twitter), Deaton emphasized this growth, suggesting Ripple might achieve even greater success. He noted that even though Ripple’s CEO, Brad Garlinghouse, mentioned they are not hurrying into going public, it’s critical to time IPOs wisely for the right impact.
In light of the current market dynamics, Deaton pointed out that if Circle can achieve a $63 billion valuation, Ripple’s prospects might be even brighter. Given that XRP currently ranks as the fourth-largest cryptocurrency, surpassing Circle’s USDC, which is seventh, Deaton believes that Ripple’s post-IPO valuation could indeed reach $100 billion. “If Circle can reach a market cap in the range of $62B to $75B, there’s a strong possibility that Ripple could hit a $100 billion market cap, especially since Ripple has a valuation near $40B with XRP currently priced around $2,” he stated.
As reported, Ripple recently made a $700 million tender offer with shares priced at $175. This has led to an increase in outstanding shares, raising their value to $25 billion as investor sentiment towards the crypto firm remains positive.
Potential Impact on XRP Prices
Market analysts suggest that if Ripple’s IPO progresses and its valuation increases, the price of XRP is likely to rise as well. Crypto investor Dennis Liu shared insights in a video indicating that a successful IPO could be beneficial for XRP’s price. He elaborated on the interconnected relationship between XRP’s performance and Ripple’s stock, highlighting the appeal this presents to investors.
Other market experts speculate that if these projections hold true, XRP could potentially reach double digits, exceeding $10. In a more optimistic scenario, following a successful IPO, it’s even conceivable that XRP’s price might soar to $100.
