XRP Price Projections with Fair Valuation Calculator: $40B, $120B, and $250B Daily Volumes
The XRP fair valuation calculator provides insight into how XRP’s price could rise as daily trading volumes increase to $40 billion, $120 billion, and $250 billion. This tool offers a unique perspective on XRP’s potential, factoring in economic parameters to estimate fair pricing.
XRP: An Undervalued Asset?
XRP has often been considered undervalued, with external pressures cited as major contributors. The ongoing Ripple vs. SEC lawsuit, initiated in December 2020 and now in the appeals phase, remains a significant factor. Additionally, speculation that Ripple itself could suppress XRP’s price has been strongly denied by the company.
Amid this debate, a valuation framework developed at Stanford Graduate School of Business by Professor Susan Athey and Robert Mitchnick has emerged as a credible tool to project XRP’s fair market value. The model incorporates economic factors like transaction volume, frequency, and discount rates to estimate pricing under different scenarios.
XRP Fair Valuation at $40B, $120B, and $250B Volumes
Using this tool, projections for XRP’s fair value at daily transaction volumes of $40 billion, $120 billion, and $250 billion highlight the potential price impact of increased adoption and utility:
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$40 Billion Daily Volume
- Estimated Value: $2.43
- Assumptions: XRP transacted every 12 hours on average with a 1% interest rate for discounting future value.
- Status: Slightly above the current price of $2.29.
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$120 Billion Daily Volume
- Estimated Value: $3.10
- Assumptions: A two-year timeline to achieve this volume, reflecting gradual adoption.
- Insight: Still below XRP’s 2018 all-time high of $3.31.
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$250 Billion Daily Volume
- Estimated Value: $4.17
- Assumptions: Two-year growth timeline with similar parameters.
- Market View: Aligns with analysts like Ali Martinez, who project XRP reaching the $4 level.
Key Valuation Criteria
The valuation model depends on several critical factors:
- Transaction Frequency: Average time between transactions.
- Growth Timeline: Time required to reach projected volumes.
- Discount Rate: Applied to future value to estimate current fair pricing.
- Utility: Potential for XRP to act as a store of value, similar to digital gold.
XRP’s Current Market Context
Currently, XRP’s daily trading volume stands at $3.5 billion, per CoinMarketCap. During its latest rally, volumes peaked at $22.6 billion on November 16, far below the calculator’s scenarios. However, this demonstrates XRP’s potential if adoption and utility expand.
Conclusion
The XRP fair valuation calculator offers a glimpse into the potential price impact of increased daily trading volumes. With adoption and utility growth, XRP could move closer to these projections, positioning itself as a key player in the evolving crypto landscape.
