A recent report by global investment bank Houlihan Lokey has drawn significant attention, revealing a deep connection between the valuation of blockchain technology firm Ripple and the price of its cryptocurrency, XRP. The document, which surfaced in February 2024, is titled “Digital Assets: How Can Valuation Differ From Traditional Assets?” and emphasizes how Ripple’s true value primarily comes from its XRP holdings rather than its corporate equity.
The findings underscore that in the realm of blockchain companies, the prices of tokens, particularly XRP, substantially influence overall valuation. Ripple’s XRP assets are currently estimated at around $92 billion based on the prevailing market price of $2.30 per token. When additional cash assets are factored in, the company’s updated theoretical valuation reaches approximately $93 billion.
The report illustrates the potential variability in Ripple’s valuation based on different prices of XRP. Three scenarios were presented, showcasing the company’s valuation in relation to various XRP price points. In one case, with XRP valued at $0.076, Ripple’s worth was estimated at $4.5 billion. In another scenario, based on a tender offer, the company was valued at $11.3 billion with XRP priced at $0.224. Most strikingly, Ripple was evaluated at $28.6 billion when XRP was priced at $0.60.
Additionally, the report touches on evolving accounting standards, specifically FASB ASU 2023-08, which mandate that crypto assets be reported at their fair market value. Currently, Ripple possesses approximately 40 billion XRP, with 5 billion available for immediate use and the remaining 35 billion held in escrow.
At the recent Ripple Swell 2025 conference, the company announced a significant $500 million investment which elevated its private valuation to $40 billion. CEO Brad Garlinghouse noted that while an initial public offering (IPO) remains a possibility, it is not a current priority for the company. Ripple President Monica Long echoed this sentiment, indicating there are no immediate plans or timelines for an IPO.
This news comes during a period of resurgence in the cryptocurrency market, aided by favorable legal outcomes for Ripple. Despite the inherent volatility of the market, Ripple has managed to regain investor confidence, powered in part by its substantial XRP holdings and the burgeoning interest in blockchain technology.
Houlihan Lokey’s findings clearly delineate the direct correlation between Ripple’s valuation and XRP’s market price, emphasizing that fluctuations in token values can significantly affect the worth of blockchain enterprises. As XRP continues to experience price variability, Ripple’s financial standing is expected to remain closely aligned with these market movements.
