XRP valuation model suggests potential $18 price

The XRP fair valuation calculator estimates that the cryptocurrency price could reach the double-digit region with an ambitious $100 billion daily transaction volume. Tensions in the Middle East, particularly the growing conflict between Iran and Israel, have rattled global markets, affecting major assets like XRP. The cryptocurrency has struggled to maintain the important $2 mark, trading at $2.01 after dropping 7% in the past week. Despite this dip, many analysts believe that XRP’s current price does not reflect its true value, given its expanding role in cross-border payments. One valuation model, developed by Stanford researchers Susan Athey and Robert Mitchnick, presents a method for valuing assets based on the utility they provide. This model estimates a fair value for XRP using real-world data and expectations. To test the potential value of XRP, we used the calculator with a projected daily transaction volume of $100 billion. Currently, the highest daily volume recorded for XRP is $51.7 billion.

xrp valuation insights from experts

However, as more banks and financial institutions start using XRP to move money, a $100 billion daily volume could become possible. The model also considers the average time between transactions, with a conservative estimate of 10 days for one XRP token, assuming a fast-moving financial system. Additionally, the store of value estimate was pegged at $115 billion, and a two-year timeframe was used to represent when this level of usage and adoption might realistically occur. For the supply figure, we used 59 billion XRP. After entering all these variables, the calculator provided a price estimate of $18.53 per XRP. This prediction suggests nearly tenfold growth from its current price, reflecting how much XRP could appreciate if it reaches this level of utilization. It’s worth noting that this model is an estimation and doesn’t guarantee future prices. However, it offers a perspective based on real-world utility, aligning with some analysts’ expectations. Telegaon analysts also forecast XRP reaching the $18 level, but by 2028, three years from now.