New research by financial analysts at Valhil Capital suggests that XRP the price is way undervalued compared to what it should be. Analysts have developed pricing models that place the value of XRP well above its current price of $0.5853, perhaps even surpassing Bitcoin.
According to Valhil Capital’s research paper, which evaluated six distinct pricing models, the price of XRP is not expected to trade for less than a dollar, but between $9.81 and $513,000.
XRP Fair Value Research
It is well established that the price of XRP has been held back over the past few years, largely due to the ongoing lawsuit between Ripple Labs, the company behind the cryptocurrency, and the SEC. This legal uncertainty has made many cryptocurrency exchanges and investors hesitant to purchase and trade XRP, leading to the cryptocurrency being left behind during the 2021 crypto market bull run.
Unlike most cryptocurrencies, which aim to replace traditional banking, XRP was designed by Ripple. to help banks move money faster and cheaper than current methods. Using this transaction function of XRP and its use as a store of value, Valhil Capital created six different evaluation models to determine the fair market value of XRP.
The first model, called the Pipeline Flow Model, considered XRP’s function as a mode of transaction as well as a store of value, setting 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 set the current fair price of XRP at $4,813.
The next two models examined only the transaction function. These models, called the 99-year Golden Eagle model and the discounted cash flow model, determined that the fair market price of XRP was $13,368 and $18,036, respectively.
Using XRP’s function as a store of value, the final two models, called the Collateral Model and the Quantum Liquidity Model, determined that the current fair price of and $513,518.
Current status of XRP price
XRP Trading has since resumed on US-based crypto exchanges, as 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 capitalization.
Some of the XRP fair market prices determined by Valhil Capital may seem outlandish, but some of them resonate with investors. current forecast And sentiment in the XRP community. On-chain data showed that investors in whales and sharks increased their assets the last days. On the other hand, Ripple’s latest periodic release of a billion XRP tokens into escrow could potentially reduce this continued buying pressure.
At the time of writing, XRP price is trading at $0.6006, up 8.94% over a 7-day period.
Token price reclaims $0.6 | Source: XRPUSD on Tradingview.com
Featured image from iStock, chart from Tradingview.com