Revolutionary Research Indicates Fair Market Value For XRP From $9.81 – $513,000
Executives of Valhill Capital, a prominent equity company, have released a revolutionary research white paper. The document reflects on an innovative and fair market value suitable for XRPand the XRPL network.
According to edge-cutting research from Valhill Capital, XRP market value received six different pricing models.
Researchers Redefine XRP Fair Market Value Differently From Listed Price On ExchangesThe document tagged A Comprehensive Approach To Determine The Fair Market Value Of XRP" discloses a unique valuation for XRP ranging from $9.81 to $513,000.
The researchers considered the possible price of XRP if the SEC vs. Ripple lawsuit never occurred. Also, their analysis focused on XRPL's growing organically without Ripple's interference.
In the study, the Valuation Committee intended to address the speculative inquiry of XRP. They wanted to quantify XRP's fair market value comprehensively. Moreover, the researchers believed the fair market value of crypto assets differs from their exchange-listed prices.
The researchers defined an asset's fair market value as a financial assessment that depends on the token's intrinsic worth. Usually, the determination of the value is through the application of a model which considers several inputs and assumptions.
Different Research Models For Determining XRP's Fair Market ValueIn assessing XRP's value, the researchers employed a multifaceted method of constructing different models for the token. Also, they highlighted the associated drawbacks for each of the models applied to Ripple valuation in the study.
Here are the various models and their XRP valuation.
- Pipeline Flow Model - XRP at $3,541
According to the researchers, the pipeline flow model is the most advanced approach for XRP valuation. It presumes that a big bang' incident will move foreign exchange volume to the XRPL.
Source: Valhill CapitalThe model sees XRPL as an ecosystem that will evolve and expand as events unfold, creating more adoption for XRP. It predicted that XRP's price would reach $3,541 following a large capital inflow.
- Athey $ Mitchnick Model - XRP At $4,813
This model foresees XRP as the sole token for FX transactions and cross-border payments. It expects to use XRPL for 10% of global transactions by 2030. Also, it assumes that Ripple will be a better choice for a store of value, with its demand surging to $530 trillion in 2030. As a result, the price of XRP could rally to $4,813 within the next seven years.
Source: Valhill Capital- 99-Year Golden Eagle Model - XRP At $13,386
This model focused on XRP's transactional use as a medium of exchange. It considers that the token will function mainly as a transaction currency with no inclination as a store of value or for speculative purposes.
Source: Valhill CapitalThough the model assumed that XRP's price could reach over $13,000, it expects stiffer competition for Ripple from other networks. On average, it predicted that XRP will gain 54% of the overall market dominance within the next 100 years.
- Discounted Cash Flow Model - XRP At $18,036
The Discounted Cash Flow model considers two perspectives in Ripple's assessment: a conservative approach that offers a higher discount rate and an optimistic outlook with a lower discount rate. This model predicts that Ripple will reach its full adoption in the next ten years, increasing its value to over $18,000.
- Collateralization Model - XRP At $122,580
The researchers highlighted the Collateralization model as an approach employed in a worst-case scenario to assess XRP's valuation. The model is best when All money and assets are tokenized on the XRPL."
Source: Valhill CapitalAdditionally, the model assumes that the price of Ripple can hit $122,580 in the next few years. Lastly, the research considered another model tagged Quantum liquidity model.
The model assumes that XRP's price will increase as more financial systems adopt it as a more efficient and secure transaction ecosystem. It predicted that Ripple will increase to $513,158 in the coming years.
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