Recent Study Estimates XRP Between $3,500 and $22,000 Amid Regulatory Shifts
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A recent study has sparked significant attention in the crypto community by placing XRP’s fair market value between $3,500 and $22,000. This wide-ranging valuation, conducted by Valhil Capital’s Jimmy Vallee and Molly Elmore, highlights the potential of Ripple’s native cryptocurrency as a major player in global value transfer. Source: Molly Elmore The study utilizes six distinct valuation models to assess XRP’s worth, each offering a unique perspective on its utility as a layer-1 asset. According to the findings, XRP could reach as high as $22,000 under optimistic scenarios, with some models even suggesting values of $122,000 and $513,000. These projections depend heavily on the assumption that the XRP Ledger becomes a widely adopted protocol for international transactions. Source: Molly Elmore XRP’s Valuation Amid Pro-Crypto Policy Shifts Vallee and Elmore’s report delves into various methodologies to estimate XRP’s market value. For example, the Athey & Mitchnick Models evaluate XRP based on different global liquidity scenarios. Under a $1 quadrillion scenario, XRP could be valued at $9,000, while a $530 trillion scenario suggests a price of $4,800. Another model, the Bakkes Pipeline Flow, focuses on XRP’s role in facilitating global transactions, estimating its value at $3,500. In addition to these, the study explores collateralization models, where XRP’s value reaches $12,200 with 100% collateralization and $1,220 with 10% collateralization. Discounted Cash Flow (DCF) models further refine these estimates, projecting XRP’s value to rise to $21,900 with a 3% discount rate. These varied approaches underscore the multifaceted potential of XRP in different financial contexts. The timing of this study coincides with significant political shifts in the United States. Following Donald Trump’s victory in the presidential election, major crypto companies like Ripple and Coinbase anticipate a more favorable regulatory environment. Trump has signaled a pro-crypto stance and intends to replace SEC Chair Gary Gensler, which…
Filed under: News - @ November 12, 2024 11:27 am