New research from financial analysts at Valhil Capital suggests the XRP The price is much more undervalued than it should be. Analysts have developed pricing models that place the value of XRP much higher than its current price of $0.5853, possibly even surpassing bitcoin.
According to Valhil Capital’s research paper, which evaluated six different pricing models, the price of XRP should not be trading for less than a dollar, but rather between $9.81 and $513,000.
XRP Fair Value Research
It is well established that the price of XRP has slowed in recent years largely due to the ongoing lawsuit between Ripple Labs, the company behind the cryptocurrency, and the SEC. This legal uncertainty made many cryptocurrency exchanges and investors hesitant to buy and trade XRP, leading to the cryptocurrency lagging during the 2021 cryptocurrency market bull run.
Unlike most cryptocurrencies, which aim to replace the traditional banking method, XRP was designed by Ripple. to help banks move money faster and cheaper than current methods. Using this transaction feature of XRP and its use as a store of value, Valhil Capital created six different valuation 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, placing 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 place the current fair price of XRP at $4,813.
The next two models analyzed only the transaction function. These models, called the 99-year Golden Eagle Model and 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 latest two models, called the Collateralization Model and Quantum Liquidity Model, determined that the current fair market price of XRP was well above the price of bitcoin, placing it at $122,580 and $513,518 respectively. .
Current XRP Price Status
XRP Trading has since resumed on US-based crypto exchanges as the cryptocurrency has been considered not to be a value by a federal judge. Despite its challenges with the SEC Since 2020, the cryptocurrency has grown to become the fifth largest in terms of market capitalization.
Some of the XRP fair market prices determined by Valhil Capital may seem outlandish, but some resonate with current predictions and sentiment in the XRP community. On-chain data has shown that investors in whales and sharks have increased their holdings in the last days. On the other hand, Ripple’s latest periodic release of 1 billion XRP tokens from 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
