For the past few days, the native crypto token from Ripple (a cross-border blockchain payment company based in the US) has seen a massive surge in price as the coin has reached levels that it has not seen in the US in the past three years . The question here, however, is why the remittance coin is making such great strides in terms of value when the valuation of parent company Ripple is currently around $ 3 billion.
According to the latest data, blockchain payment giant Ripple’s equity is currently trading between $ 2 billion and $ 3 billion. While this rating is compared to that of Ripple’s XRP holdings, it has surprised the community. The data shows that Ripple’s XRP holdings are currently valued at approximately $ 70 billion, which is very high compared to the company’s equity valuation.
While discussing Ripple’s stock trading in the secondary market, Galaxy Digital Chief Executive Officer Mike Novogratz stated:
“Ripple Equity is “traded” in the secondary market at a valuation of $ 2-3 billion. The XRP on their balance sheet is valued at approximately $ 70 billion. One price seems wrong. When the $ XRP price says a deal is imminent, equity is insane cheap. If not, the token seems expensive. Thoughts?”
What’s more surprising to the Ripple community is that Ripple’s native cryptocurrency still performs well in terms of value for money. In the past few days, the price of XRP has soared more than 70 percent, hitting the $ 1.40 mark, the coin’s new three-year high.
Charlie Bilello, Chief Executive Officer (CEO) and founder of Compound Capital Advisors, posted a tweet sharing the returns of various digital currencies over the past year. According to Charlie Bilello’s tweet, XRP’s return is more than +530 percent last year.
Return compared to last year …
Cardano $ ADA: + 3,290%
BinanceCoin $ BNB: + 3,058%
Speckle $ DOT: + 1,353%
ether $ ETH: + 1,171%
Uniswap $ UNI: + 953%
Chain link $ LINK: + 875%
Bitcoin $ BTC: + 728%
XRP $ XRP: + 532%
Litecoin $ LTC: + 406%
Bitcoin Cash $ BCH: + 161%
Gold: + 3%
US dollar index $ USD: -8th%
– Charlie Bilello (@charliebilello) April 10, 2021