The XRP price has the potential to surge to new heights if Ripple decides to go public in the United States and reaches a valuation of $600 per share.
Discussions about the imminent Ripple IPO have significantly declined recently, as the community focuses on more pressing matters such as XRP’s underperformance in the current bull market.
Despite not experiencing the same surge as other cryptocurrencies in the market uptrend, XRP has now dropped significantly during the ongoing downtrend. While Bitcoin (BTC) and Ethereum (ETH) have seen declines of 3.86% and 5.13% respectively in the past 24 hours, XRP has plummeted 8.18% below the $0.50 support.
There is speculation among market observers that various factors could contribute to a potential resurgence in the price of XRP, with some predicting a rise to two or three-digit price figures. One key factor is the Ripple IPO.
Although Ripple has not confirmed a specific date for its IPO, CEO Brad Garlinghouse has acknowledged the possibility of it happening. Additionally, Linda Jones, a Wall Street veteran, revealed last August that research firm Pitchbook predicts a 98% chance of Ripple going public.
Jones further argued in a report from The Crypto Basic in June 2023 that the ideal time for Ripple to launch its IPO is when XRP has a low price. U.S. attorney John Deaton also predicted that Ripple could go public within a year of achieving regulatory success in the U.S.
According to Jones, Ripple’s shares could potentially skyrocket to $600 after the IPO, resulting in a valuation of $97.7 billion. She cited factors such as Coinbase’s valuation post IPO and Ripple’s significant XRP holdings as contributing factors.
Currently, pre-IPO shares of Ripple trade at $44.69, significantly higher than last year’s value of $35, according to data from Linqto. If Ripple’s valuation were to increase by the expected 1,242%, it would have a significant positive impact on the price of XRP. However, it is difficult to accurately gauge the scale of this impact due to the lack of historical data.
XRP is currently trading at $0.4940 after the market crash. If its price were to increase by a similar 1,242% rate, as expected for Ripple’s shares, it would reach $6.63.
Industry commentators believe that a rise in Ripple’s shares following the IPO would likely trigger a similar surge in the price of XRP, leading to anticipation among XRP supporters. This argument draws parallels with the historical correlation between Bitcoin (BTC) and the stocks of Bitcoin mining companies.
However, it is important to note that these comments are speculative and should not be taken as investment advice. There is no guarantee of an automatic price correlation between Ripple’s shares and the price of XRP. Therefore, it remains uncertain whether XRP will experience a surge in tandem with the company’s shares.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. The views expressed in this article are the author’s personal opinions and do not reflect the opinion of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses incurred.
