Recent analyses have proposed extraordinarily high valuations for Ripple’s XRP cryptocurrency, despite its prolonged period of price stagnation. Following the conclusion of the legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC), the XRP army is eager to see a massive rally.
Over the past year, XRP has seen a modest 15% increase in value. However, at its current price of $0.5882, it is down 84.66% from its all-time high of $3.84. XRP’s price has stayed below $1 since 2021, but experts now believe a massive resurgence is coming.
Ambitious Valuation Theories
Levi Rietveld, a crypto expert on X recently presented findings on XRP’s true value. Despite the market’s tepid performance, he suggests potential high valuations for XRP.
Rietveld’s analysis posits that if XRP becomes the foundation of a new global financial system, its market capitalization could reach quadrillions of dollars. According to Rietveld, this scenario could push XRP’s fair market value to $38,999.
The analyst’s projection considers the global debt, estimated at approximately $350 trillion, and the derivatives market, valued at around $750 trillion. Rietveld suggests that XRP could attain this level if it plays a central role in financial transactions and broader financial infrastructure.
We are on twitter, follow us to connect with us :- @TimesTabloid1
— TimesTabloid (@TimesTabloid1) July 15, 2023
Tokenization of Real-World Assets
Rietveld’s prediction gains additional significance when considered alongside the ambitions of major financial institutions to tokenize real-world assets. He notes that Major institutions around the globe have plans to tokenize real-world assets.
According to him, the goal extends beyond replacing the current debt system, as these institutions want to transition everything to the new tokenization-driven system.
Tokenization has begun on the XRP Ledger with the upcoming tokenized U.S. Treasury Bills (T-BILLS), and Rietveld expresses hope that the XRPL could serve as the platform for this transition, arguing that this role could help XRP reach his lofty target.
Liquidity and Regulatory Factors
Rietveld also emphasizes that achieving such high valuations would require substantial liquidity. He believes Ripple’s anticipated Initial Public Offering (IPO) could play a crucial role in this regard. The analyst also highlights the importance of regulatory clarity and significant institutional investment in driving XRP’s price to these projected heights.
Another valuation model recently placed XRP at $4,813, significantly higher than its current price. Although the driving factors differ, most analysis models agree that the digital asset is grossly undervalued, and expect it to rise to very high prices in the future.
Follow us on Twitter, Facebook, Telegram, and Google News
