Despite its potential to revolutionize cross-border payments, XRP has languished in the shadow of other cryptocurrencies. This poor performance has not gone unnoticed with experts trying to explain the digital asset’s underperformance.
While other popular assets have soared over the last few months, XRP has remained subdued. Some attribute its behavior to price suppression, but XRP’s failures have been attributed largely to the lawsuit with the U.S. Securities and Exchange Commission (SEC).
Read Also: XRP Price Primed for Parabolic Surge as Analyst Spots 1000% Golden Cross: Details
However, Ripple currently has three consecutive victories over the SEC, and many believe XRP’s current legal clarity would have cleared the way for a surge by now.
Although there are many potential reasons for XRP’s underperformance, one thing all interested parties agree on is that XRP’s price is much lower than it should be. To gauge its potential, Valhill Capital, a venture capital firm, has presented several valuation models, offering diverse perspectives on its fair market price.
XRP’s Fair Value Estimates
Valhill Capital analyzed six of these models. Each model employs a unique approach, highlighting different aspects of XRP’s potential. Here’s a glimpse into some noteworthy examples:
Pipeline Flow Model: This model envisions XRP capturing a sizable chunk of global foreign exchange volume due to its speed and efficiency. This scenario translates to a predicted price of $3,541.
Athey & Mitchnick Model: This model projects a 10% share of the global cross-border payments and forex market for XRP by 2030, coupled with its emergence as a preferred store of value. These assumptions lead to a projected price of $4,813.
99-Year Golden Eagle Model: This long-term model focuses on XRP’s transactional utility, assuming widespread adoption for daily payments. Based on projected XRP Ledger (XRPL) growth and global economic expansion, it estimates a price of $13,386 in 99 years.
Discounted Cash Flow Model: Valuing XRP as a cash-generating asset based on future use cases, this model predicts a price of $18,036 by discounting projected cash flows to their present value.
Collateralization Model: Assuming all global money is tokenized on the XRPL, Valhill Capital calculates a sky-high fair value of $122,580.
Quantum Liquidity Model: Valuing XRP as a high-value store of value for financial stability suggests a price of $513,158.
We are on twitter, follow us to connect with us :- @TimesTabloid1
— TimesTabloid (@TimesTabloid1) July 15, 2023
Read Also: XRP Price Is Set For Meteoric Surge? Analyst Confirms 1000% Golden Cross Is Back
The Road Ahead for XRP
While the fair value estimates vary considerably, they collectively show that XRP is currently undervalued. Whether it reaches the predicted price points depends on regulatory clarity, crypto market trends, and Ripple’s strategy to boost its price.
Meanwhile, a top analyst recently reiterated a target of $8 to $13 for XRP, and this could be the start of its journey to these mind-blowing targets set by Valhill Capital.
Follow us on Twitter, Facebook, Telegram, and Google News
