 ▲ XRP (XRP) |
Ripple has announced a double boost of positive developments— a share buyback program and a partnership with Mastercard— pushing its corporate valuation to $50 billion. However, the price of XRP has remained stagnant, deepening the decoupling phenomenon between corporate growth and token value.
According to cryptocurrency media outlet U.Today on March 12 (local time), Ripple has launched a share repurchase program worth up to $750 million for investors and employees. Through this program, Ripple’s corporate valuation has been estimated at approximately $50 billion. Bloomberg analyzed that Ripple plans to proceed with the buyback through April, and that this move will provide liquidity to shareholders while signaling financial confidence to the market. Ripple previously repurchased $285 million worth of shares in January 2024, continuing its shareholder-friendly policies.
This latest valuation marks a roughly 25% surge compared to the $40 billion recorded during a funding round last November. On the private stock trading platform Hiive, Ripple’s share price rose from around $125 to $143.43. Major global investment firms, including Citadel Securities and Fortress Investment Group, participated in the funding round, demonstrating confidence in Ripple’s business model. Despite volatility across the broader crypto market, Ripple has ranked sixth among the world’s most valuable private digital asset companies through strategic capital management.
Mastercard, a global payments giant, recently highlighted XRP as a bridge currency for cross-border remittances in a report, underscoring Ripple’s technological capabilities. Ripple continues efforts to integrate its stablecoin RLUSD into Mastercard’s credit card transaction system, accelerating the convergence of traditional financial infrastructure and blockchain technology. To date, Ripple has processed more than $100 billion in transactions, while RLUSD’s market capitalization surpassed $1 billion just over a year after launch, maintaining steady growth.
Despite the series of major positive developments, XRP has been trading sideways around $1.39, disappointing investors. Market analysts point out that while Ripple’s share buybacks directly benefit shareholders by increasing earnings per share, there is a structural limitation in that these moves do not translate into direct gains for XRP holders. Within the XRP community, some have voiced concerns that funds secured through token sales are being used primarily for share repurchases aimed at boosting corporate value.
Ripple is accelerating its expansion in the Asia-Pacific region, including acquiring a local payments company to secure an Australian financial license. However, regulatory uncertainty and macroeconomic factors continue to hinder XRP’s price growth. As corporate progress in entering the institutional financial system has yet to translate into tangible demand for the token, the broader market slump, including Bitcoin (BTC), is also cited as a key factor weighing on XRP. Investors are closely monitoring changes in on-chain data to see whether Ripple’s rising corporate valuation will eventually lead to expanded real-world use cases and a price rebound for XRP.
*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses resulting from its use. The information provided should be interpreted for informational purposes only.*