XRP Enthusiasts Say the Token Is Undervalued. Here's Why

XRP enthusiasts often say the token is undervalued. It is currently trading at $0.5126, but the Pipeline Flow Model, developed by Dr. Deon Bakkes, suggests a fair value

XRP’s price has been a subject of discussion among enthusiasts and traders. While some believe the token is undervalued, considering its role in global financial systems, others point to factors that may be suppressing its price.

One perspective on XRP’s potential value is offered by the Pipeline Flow Model, developed by Dr. Deon Bakkes. This model combines economic and ecological concepts to estimate a fair market value for XRP.

According to the Pipeline Flow Model, XRP’s price is influenced by its role in facilitating global transactions. The model compares XRP’s payment rails to pipes carrying value, with the token’s price representing the diameter of each pipe. As transaction volumes increase, the pipes must expand to handle the demand, leading to a rise in XRP’s price.

The circulating supply of XRP also affects its valuation, as it determines the total “capacity” for handling global transactions. The model suggests that XRP’s fair value could increase dramatically, especially if a major event, such as widespread adoption for foreign exchange (FX) transactions, boosts demand.

In different market scenarios, the Pipeline Flow Model estimates XRP’s fair value to be around $3,541. This assumes peak transaction volumes, driven by high adoption rates and tighter supply.

However, it’s important to note that this value is not a concrete price prediction. It showcases a theoretical value if XRP were to be utilized globally. This fair value highlights the vast growth potential XRP may have if it were to be freed from current regulatory and market constraints. The model’s valuation suggests that XRP is currently undervalued by nearly 690,692%, showcasing how much its market value might increase if all obstacles were removed.