XRP Price Drives Ripple’s $93B Valuation, Says Global Investment Bank

TLDR

• The valuation of Ripple is directly linked to the price of XRP, according to a recent report by Houlihan Lokey.
• Ripple’s true value primarily stems from its XRP holdings rather than its corporate equity.
• The report highlights that token prices, especially XRP, significantly affect the overall valuation of blockchain companies like Ripple.
• Ripple’s XRP holdings are valued at around $92 billion based on the current market price of $2.30 per token.
• Ripple’s updated theoretical valuation stands at $93 billion when factoring in its XRP holdings and cash assets.

A report by global investment bank Houlihan Lokey links the valuation of blockchain technology firm Ripple directly to the price of XRP. The February 2024 report, titled “Digital Assets: How Can Valuation Differ From Traditional Assets?”, highlights Ripple’s reliance on its XRP holdings for valuation. The findings recently resurfaced in the XRP community, attracting attention from researcher SMQKE.

Ripple’s Valuation Tied to XRP Holdings

Houlihan Lokey’s report argues that Ripple’s primary source of value lies in its XRP holdings rather than its corporate equity. The firm points out that in blockchain projects, tokens tend to hold most of the economic upside. XRP, as the gas token of the XRP Ledger, serves as the main driver of Ripple’s value.

The bank’s valuation model presented three scenarios, showing how XRP price impacts Ripple’s overall worth. In one scenario, Ripple was valued at $4.5 billion with an XRP price of $0.076. A second scenario, based on Ripple’s tender offer, valued the company at $11.3 billion, with XRP priced at $0.224.

XRP Price Drives Ripple’s Theoretical Valuation

The third scenario in Houlihan Lokey’s report used XRP’s market price of $0.60, estimating Ripple’s value at $28.6 billion. This valuation highlights the significant impact XRP price has on Ripple’s overall worth. The report also discussed the role of new accounting standards, such as FASB ASU 2023-08, which require crypto assets to be reported at fair market value.

As of the latest market conditions, Ripple holds around 40 billion XRP, with 5 billion available for spending and 35 billion held in escrow. With XRP trading at $2.30, Ripple’s total XRP holdings are valued at approximately $92 billion. Adding $1 billion in cash and securities, Ripple’s updated theoretical valuation rises to $93 billion.

Ripple’s Investment and Private Valuation Growth

At the Ripple Swell 2025 conference, the company revealed a $500 million investment, raising its private valuation to $40 billion. CEO Brad Garlinghouse stated that an IPO remains possible, but it is not a focus for the company right now. Ripple President Monica Long confirmed the company has no immediate plans for an IPO, setting no timeline for such a move.

This development follows a period of recovery in the crypto market, boosted by favorable court rulings like Ripple’s legal victories. Despite the volatile market, Ripple has gained investor confidence, thanks in part to Ripple’s XRP holdings and the growing interest in blockchain technology.

Houlihan Lokey’s report underscores the direct link between Ripple’s valuation and the price of XRP. This relationship highlights how token prices can significantly impact the valuation of blockchain companies. As XRP continues to see fluctuations in market price, Ripple’s worth will remain closely tied to those movements.

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