XRP Valuation Study Projects Fair Market Value Between $3,500 and $22,000 as Layer-1 Asset

• A new valuation model has projected XRP’s fair value to be between $3,500 and $22,000 as its adoption grows and tech improvements usher in a new era for the financial industry.
• The legal case surrounding the XRP token remains a key factor in its bullish future, with an administration change expected at the U.S. SEC.

A recent study estimated the fair market value of XRP to range between $3,500 and $22,000. Crypto influencer Amelie shared the findings on Twitter, highlighting XRP’s potential in the broader crypto market. Jimmy Vallee, MD, and Molly Elmore, CMO of Blockchain Businesses at Valhil Capital, conducted the research using six different methods. 

WOW!

A RECENTLY PUBLISHED STUDY AIMED TO DETERMINE THE FAIR MARKET VALUATION OF #XRP AND FOUND ITS FAIR VALUE BETWEEN $3,5k AND $22k! https://t.co/uL9P0EvWq2 pic.twitter.com/3lZppM2jzW

— 𝓐𝓶𝓮𝓵𝓲𝓮 (@_Crypto_Barbie) November 8, 2024

Each method provides a unique perspective on XRP’s future, especially its use as a primary platform for transferring value worldwide. The estimates range from $3,500 to $22,000, with some methods predicting values as high as $122,000 and even $513,000 in extreme cases.

XRP Valuation Models Suggest $3.5K to $22K Price Range

The study carefully examines XRP’s fair market value from different angles. If the XRP Ledger becomes a widely used layer-1 protocol for global transactions, its value could grow significantly. Each model uses accepted methods to assess various uses of XRP, from transaction efficiency to its potential as a store of value.

For example, the Athey and Mitchnick Models estimate XRP’s value based on global liquidity scenarios. These scenarios predict XRP’s value if it supports different levels of worldwide asset transfer, with values set at $9,000, $908, and $4,800, corresponding to $1 quadrillion, $100 trillion, and $530 trillion in global liquidity. At the same time, the Bakkes Pipeline Flow model looks at transaction flow, valuing XRP at $3,500 based on its role in facilitating global transactions and cash flow.

Collateralization models examine how XRP can be used as collateral, valuing it at $12,200 with full backing and $1,220 with only 10% backing. Discounted Cash Flow models, which estimate value based on future earnings, predict XRP’s value at $15,000, $18,000, and $21,900 with discount rates of 1%, 2%, and 3%. These estimates show that XRP’s value increases over time.

Golden Eagle models look at XRP’s ability to hold value over long periods, estimating its value at $13,300 over 99 years and $9,810 by 2030. The Quantum Liquidity Model, the most optimistic scenario in the study, projects XRP could be worth $513,000 by maximizing its use in high-value liquidity applications. Most valuations, excluding extreme cases, range between $3,500 and $22,000.

Trump’s Pro-Crypto Stance Could Reshape XRP’s Future

Amid these optimistic valuations, the crypto market deals with major regulatory changes. After Donald Trump won the US presidential election, Ripple and Coinbase expect a significant shift in crypto regulations. Trump has shown support for crypto and plans to replace SEC Chair Gary Gensler on the first day of his administration.

Paul Grewal, Coinbase’s Chief Legal Officer, is optimistic that the new administration will better separate genuine crypto projects from scams. Grewal told FOX Business journalist Eleanor Terrett.

I think the new administration will take a fresh look at all the existing crypto cases brought under Gary Gensler and distinguish between the ones aimed at what are clearly scams and fraud and ones that are not,

Brian Armstrong, the CEO of Coinbase, called the election a major victory for cryptocurrency. He mentioned that support for crypto was crucial in Bernie Moreno’s win over Senator Sherrod Brown in Ohio. This outcome shows that Congress is becoming more supportive of crypto, with 257 pro-crypto members elected to the House.

Brad Garlinghouse, the CEO of Ripple, also welcomed Trump’s win and pushed for quick changes in regulations. He did not talk about the ongoing lawsuit with the SEC. Instead, Garlinghouse shared a 100-day plan for the new administration, suggesting that Gensler be replaced with crypto-friendly leaders like Chris Giancarlo, Brian Brooks, or Dan Gallagher.