The valuation of XRP continues to be a topic of discussion in the cryptocurrency community. Despite significant price fluctuations, many still view XRP as undervalued.
Measuring XRP’s Value Through Utility
A methodology based on the utility of digital assets suggests that their value should be assessed through actual economic activity. The model developed by Robert Mitchnik and Susan Athey focuses on estimating a token’s value based on transaction volume and usage frequency.
Comparison with Tether (USDT)
Tether (USDT) reached a peak transaction volume of $292 billion. In contrast, XRP's highest transaction volume was $51.7 billion in December 2023. This creates meaningful benchmarks for assessing the growth potential of XRP if it is adopted on a larger scale.
Projected XRP Price Outcome
Assuming similar conditions, the valuation model estimates the price of XRP could reach $44.13 per token, significantly higher than the current market value of $2.28, indicating a potential increase of 1836%.
The analysis illustrates not a price prediction but a potential valuation of XRP if it reaches transaction volumes comparable to leading assets like USDT.
