A recent study values XRP's fair market price between $3,500 and $22,000, capturing significant attention from the crypto community.
XRP Valuation Methodologies
The study by Jimmy Vallee and Molly Elmore of Valhil Capital employs six different valuation models, each offering a unique perspective on XRP's role as a layer-1 asset. Under optimistic scenarios, XRP's value could reach as high as $22,000, with some models suggesting prices of $122,000 and $513,000. These estimates largely hinge on the assumption that the XRP Ledger will become a widely adopted protocol for international transactions. Vallee and Elmore's analysis includes various methodologies to estimate XRP’s market value.
Political Shifts in the USA
The timing of the study aligns with significant political changes in the United States. Following Donald Trump’s election victory, major crypto companies like Ripple and Coinbase are hopeful for a more favorable regulatory environment. Trump has expressed a pro-crypto stance and plans to replace SEC Chair Gary Gensler, which could prompt a reevaluation of ongoing legal cases against these firms.
Implications for XRP and the Crypto Industry
The study’s median value for XRP stands at around $12,822, with a mean value of $61,231, reflecting a positive outlook among analysts. The highest estimate from the Quantum Liquidity Model suggests XRP could reach $513,000 if its utility as a store of value is fully realized. Political backing could be crucial in driving XRP’s adoption and enhancing its market value.
Changes in the regulatory landscape and political support could play a vital role in the future of XRP and its global adoption.
