Crypto commentator Zack Rector recently expressed his views on the undervaluation of Ripple and the digital asset XRP despite rising valuations.
Accordingly Mr. Rector, even if Ripple’s valuation increases by 2025, the company and XRP remain significantly undervalued and offer promising investment opportunities.
Ripple’s implied valuation reaches $20 billion
For much of 2024 and since 2022, Ripple has traded at an implied valuation of between $7 billion and $10 billion Platforms like Linqto. However, Rector pointed out that this number has more than doubled and Ripple is now worth around $20 billion on the same platforms.
Although this bullish trend reflects increased investor interest and optimism, Rector believes the company is still undervalued at the current price.
Rector explained that Ripple’s shares are not publicly traded on the NASDAQ or the New York Stock Exchange. Instead, the equity is available in private markets prior to the IPO, primarily to accredited investors and institutions that want to get an early stake in the company before it eventually goes public.
Ripple’s Trust Holdings: A Significant Contribution to Valuation
According to Rector, this is a key component of Ripple’s undervaluation the company’s XRP holdings in his trust account. There are currently around 40 billion XRP in the escrow account. At the current price of $2.08 per XRP, this supply is worth around $83 billion.
Rector highlighted that Ripple’s escrow holdings were worth $20 billion when XRP was trading at $0.50 for most of 2024 and previous years. Accordingly, the company’s $7 billion to $10 billion valuation seemed out of line given the value of its deposited assets.
