For the second time this week, Ripple’s price reached a new all-time high of $ 1.52, increasing by over 15% overnight and achieving a market cap of $ 59 billion.
Rippling price against bitcoin
According to the Wall Street Journal, Uber’s $ 70 billion market valuation fell $ 20 billion over 24 hours after SoftBank, Japan’s largest technology investment company, acquired a 20 percent stake percent in Uber, valuing the company at $ 50 billion.
Having set a new record high, Ripple is now bigger than Uber and Didi Chuxing, two of the biggest technology startups in the global market with a market capitalization of over $ 50 billion.
WSJ Billion Dollar Startup Club
Ophir Gottlieb, CEO of Capital Market Labs, a member of Thomson Reuters’s First Call Institutional Research, said that Ripple’s price is rising at a rapid pace because of its potential in regions like South Korea and Japan where financial institutions on a large scale, banks and credit card companies have already adopted Ripple block technologies.
Ripple that exceeds Ripple’s market valuation can be easily justified, said Gottlieb, noting that Ripple can penetrate a wider market than Uber.
“Ripple’s total addressable market is $ 5 trillion a day in exchange for transnational currency (currently on SWIFT), or more than one quadrillion dollars a year.Removing technology (no digital currency required) is a very bigger than Uber’s, “explained Gottlieb.
But it is also difficult and imprecise to justify a market valuation of a currency purely based on a total addressable market, because RIpple still has to process even a small part of the volume of transactions in the global finance and currency market, while Uber dominated the market of car sharing for many years.
Moreover, if the market valuation of any cryptocurrency can be justified by a total addressable market, bitcoin market capitalization may be trillions as of now, given that it is the $ 40 trillion offshore banking sector, the market for $ 8 trillion gold and the global fiat money market is trying to replace.
Although it is not fair and accurate to justify Ripple’s capitalization based on its potential and addressable market, it can be said that its connections and partnerships with around 90 banks in Japan and South Korea can justify its recent price increase.
Previously, CCN reported that Japan’s leading financial institution SBI Holdings and its joint venture with RIpple SBI Ripple Asia have formed a consortium of credit card companies that will implement Ripple technologies in the coming months.
“We will invest in the ecosystem to accelerate the adoption of Ripple technology,” said Ripple CEO Brad Garlinghouse on Squawk Alley of CNBC. “One of the things we all need to remember is that the value of a long-term token will really be driven by its usefulness.” There’s no doubt that there’s a lot of hype in this system. ”
CC also revealed that Ripple has paid $ 180 million in payments to the Swedish SEB bank, processing cross-border payments for high-profile customers.
If Ripple can build a customer base of leading banks and regulate billions of dollars in payments on a daily basis, its price and market valuation as a payment company will further increase from its current levels.