Unique Fair Pricing Model Puts XRP Price Higher Than Bitcoin, Here’s How Much
November 01 2023 - 3:00PM
NEWSBTC
New research from financial analysts at Valhil Capital suggests the
XRP price is far undervalued than what it should be. Analysts have
developed pricing models that put the value of XRP way higher than
its current price of $0.5853, possibly even surpassing
Bitcoin. According to the research paper from Valhil Capital,
which evaluated six distinct pricing models, XRP’s price should not
be trading for less than a dollar but somewhere between $9.81 and
$513,000. Research on XRP’s Fair Value It’s been well established
that the XRP price has been held back over the past few years in
large part due to the ongoing lawsuit between Ripple Labs, the
company behind the cryptocurrency, and the SEC. This legal
uncertainty made many crypto exchanges and investors hesitant to
buy and trade XRP, leading to the cryptocurrency being left behind
during the 2021 crypto market bull run. Related Reading: Galaxy
Digital and Invesco Bitcoin Spot ETF Join BlackRock On The DTCC
Unlike most cryptocurrencies, which aim to replace the traditional
method of banking, XRP was designed by Ripple to help banks move
money quicker and cheaper than current methods. Using this
transaction function of XRP and its use as a store of value, Valhil
Capital created six different valuation models to determine XRP’s
fair market value. The first model, called the Pipeline Flow Model,
considered XRP’s function as a mode of transaction as well as a
store of value, putting its fair value in this case at $3,541. The
second model called the Athey and Mitchnick Model, also used the
transaction and store of value function to put XRP’s current fair
price at $4,813. The next two models looked at the
transaction function alone. These models, named the 99-Year Golden
Eagle Model and the Discounted Cash Flow Model, determined XRP’s
fair market price to be $13,368 and $18,036, respectively.
Using XRP’s function as a store of value, the last two models,
called the Collaterization Model and Quantum Liquidity Model,
determined XRP’s current fair market price to be far above the
price of Bitcoin, putting it at $122,580 and $513,518
respectively. Current State Of The XRP Price XRP trading has
since resumed on US-based crypto exchanges, as the cryptocurrency
has been deemed not to be a security by a federal judge. Despite
its challenges with the SEC since 2020, the cryptocurrency has
grown to become the 5th-largest in terms of market cap.
Related Reading: Top 5 Bitcoin-Like Altcoins That Could Make You A
Millionaire In The Crypto Bull Run Some of XRP’s fair market prices
determined by Valhil Capital might seem extravagant, but some of
them resonate with current predictions and sentiment in the XRP
community. On-chain data has shown that whale and shark investors
have increased their holdings in the past few days. On the other
hand, Ripple’s latest periodic release of 1 billion XRP tokens from
escrow could potentially reduce this ongoing buying pressure. At
the time of writing, the XRP price is trading at $0.6006, up by
8.94% in a 7-day timeframe. Token price reclaims $0.6 |
Source: XRPUSD on Tradingview.com Featured image from iStock, chart
from Tradingview.com
Internet Computer (COIN:ICPUSD)
Historical Stock Chart
From Sep 2024 to Oct 2024
Internet Computer (COIN:ICPUSD)
Historical Stock Chart
From Oct 2023 to Oct 2024