Will the Rise in Ripple Stock Prices Affect the Price of XRP?

Recent reports about the potential stock market debut of Ripple have sparked heated discussions in the cryptocurrency community. Primarily, many market observers speculate that such a situation could lead to a significant increase in the price of XRP. What factors are driving this optimism? What could the future of this popular cryptocurrency look like?

High expectations for Ripple's IPO

Ripple, a company specializing in blockchain-based payments, has long been in the spotlight due to speculation about its initial public offering (IPO) in the United States. Despite the lack of confirmed details regarding the debut date, the company's CEO, Brad Garlinghouse, does not rule out the possibility of such a move. Additionally, Linda Jones, an experienced investor from Wall Street, emphasized that the research firm Pitchbook estimates a 98% chance of Ripple going public.

Surging valuation of Ripple stock

According to reports from last May, Ripple stocks could reach a value of up to $600 per share after the stock market debut, which would imply a valuation of the company at nearly $98 billion. These optimistic forecasts are based on various factors, including experiences related to the stock market debut of other giants in the cryptocurrency industry, such as Coinbase.

Increase in the price of XRP and Ripple's stock market debut

It is worth noting that data from Linqto indicates that Ripple stocks currently fluctuate around $44.69 per share before the stock market debut, significantly higher than last year when their value was $35. A jump from the current value to $600 USD would mean an increase in Ripple's valuation by 1242%.

Such a massive increase could positively impact the price of XRP, but there are few historical precedents related to correlational data to accurately estimate the scale of this impact. Currently, XRP is priced at $0.4940 after the recent market crash. If the price of XRP were to increase by a similar 1242% as expected for Ripple stock valuation, it would reach $6.63.

Many market commentators believe such a correlation is likely. However, it is essential to exercise caution and remember that the cryptocurrency market is highly volatile, and speculations about future prices can be risky. Investment decisions should be made after thorough analysis and consultation with experts.