- Ripple’s valuation has reportedly jumped by 25% since November.
- It comes amidst a massive market drawdown.
- Still, the XRP Army is ploughing billions into XRP ETFs.
Two things can be true at the same time.
Ripple just achieved a $50 billion valuation as part of a massive share buyback programme, which pushed its valuation up by 25% since it raised $500 million in November, according to Bloomberg.
At the same time, the price of XRP, the cryptocurrency developed by the firm, has lost over 60% of its value since reaching an all-time high in July, but that hasn’t dissuaded the token’s supporters from investing billions into exchange-traded funds tied to the asset.
First, the valuation. Ripple has kicked off a share buyback programme for some $750 million worth of shares from investors and employees. The buyback drive will continue through April, Bloomberg reported.
Ripple most recently bought back $285 million worth of shares from early investors and employees at an $11 billion valuation in January 2024, according to Reuters.
The new buyback drive comes hot on the heels of Ripple securing a $500 million strategic investment from affiliates of Fortress Investment Group, Citadel Securities, Pantera Capital, Galaxy Digital, Brevan Howard, and Marshall Wace.
XRP down 60%
The latest buyback drive comes as uncertainty weighs on the crypto market.
The market has lost almost half its value since October, and a perfect storm of geopolitical turmoil, tariffs, and the escalating conflict in the Middle East threatens to drag down cryptocurrency prices further.
XRP has not been left unscorched. The Ripple-linked asset has lost 54% of its value since October.
Hello! This chart will be available in a few moments
Yet, that doesn’t seem to deter the XRP Army, the collective noun for the asset’s diehard fans. No
In fact, they’ve injected over $1.5 billion into XRP ETFs despite the market drawdown.
“My guess is this [degree of inflows] is largely XRP superfans versus casual retail,” Bloomberg Intelligence ETF analyst Eric Balchunas wrote on X on March 10.
Ripple didn’t immediately return a request for comment.
Eric Johansson is DL News’ managing editor. Got a tip? Email him at eric@dlnews.com.
