A Recently Published Study Aimed to Determine the Fair Market Valuation of #XRP and Found Its Fair Value Between $3,5k and $22k

The study conducted by Jimmy Vallee, MD at Valhil Capital, and Molly Elmore, Valhil Capital's Blockchain Businesses CMO, presented six unique valuation

A recent study has valued XRP, the native cryptocurrency of Ripple, at a range of $3,500 to $22,000. The study, conducted by Jimmy Vallee, MD at Valhil Capital, and Molly Elmore, Valhil Capital’s Blockchain Businesses CMO, used six unique valuation models to assess XRP’s potential value as a widely adopted layer-1 asset for global value transfer.

The study’s valuations vary significantly depending on the assumptions and focus of each model, with most results clustering between $3,500 and $22,000 per XRP when excluding extreme outliers. The median value across all models is approximately $12,822, while the mean value reaches $61,231.

The study’s findings are particularly noteworthy in the context of XRP’s role in facilitating global transactions. According to the report, if the XRP Ledger were to be broadly utilized for this purpose, the token’s value could soar to staggering heights.

This valuation is especially relevant considering XRP’s potential to serve as a layer-1 protocol for global value transfer. If such a scenario were to come to fruition, XRP’s market valuation could indeed reach astronomical levels.

The valuations obtained through the Athey & Mitchnick Models, for instance, are based on different tiers of global liquidity, estimating XRP’s value at $9,000, $908, and $4,800 for scenarios of $1 quadrillion (Q), $100 trillion (T), and $530 billion, respectively.

Another model, the Bakkes Pipeline Flow, places XRP’s value at $3,500, considering the token’s role in facilitating global cash flow and transactions.

The study also evaluated XRP’s potential as collateral, with 100% and 10% collateralization scenarios. In the case of 100% collateralization, XRP’s value reaches $12,200, while 10% collateralization estimates it at $1,220, reflecting XRP’s function in securing value across various financial networks.

Furthermore, several models based on discounted cash flow (DCF) analysis were included. These models value assets based on projected cash flows and utility over time. The DCF models at 1%, 2%, and 3% discount rates provided XRP valuations of $15,000, $18,000, and $21,900, respectively, indicating a progressive increase in XRP’s value as the discount rate decreases.

The Golden Eagle Models assessed XRP over extended time frames, focusing on store-of-value potential. For the 99-year scenario, XRP’s estimated value is $13,300, while the 2030 projection places XRP at a more modest $9,810.

The Quantum Liquidity Model, exploring XRP’s potential in high-value liquidity applications, gave a valuation of $513,000, the highest in the study. This model considers an extreme case where XRP’s store-of-value utility is maximized, creating a theoretically high valuation.

These valuations are part of a broader analysis of XRP's potential value in different scenarios, and they highlight the token’s promising outlook in the evolving global financial landscape.

However, it is essential to note that these valuations are theoretical and may not directly reflect the actual market price of XRP. Numerous factors, including regulatory acceptance, technological adoption, and competition from other digital assets, will ultimately influence the token’s market value.