Valhil Capital has introduced a new valuation model suggesting XRP's value could exceed $4,800 by the end of this decade. The prediction is based on the Athey & Mitchnick Model, focusing on two primary functions of XRP.
Key Drivers Behind the XRP Valuation Model
Valhil's model offers a new approach to understanding XRP’s value, based on its potential as a store of value rather than solely as a means of exchange. As adoption increases, XRP's scarcity will rise due to long-term holding, which may promote upward price movement.
Detailed Forecasts for XRP
The model assumes XRP will reach adoption maturity by 2030 with daily transaction volumes around $700 billion and a constant circulating supply of 56.5 billion XRP. The baseline projection is $4,813. If XRP Ledger usage reaches just 10% of global transaction volume, the valuation could suggest a fair value of around $908 per XRP.
Market Psychology, Limitations, and XRP’s Future
Valhil’s model highlights a positive feedback loop whereby rising XRP prices lead to increased holding, reducing supply and fostering further adoption. However, there are limitations, including regulatory uncertainty and technological shifts.
Despite optimistic projections, Valhil Capital emphasizes that successful adoption of XRP depends on numerous factors, including its expanding role in sectors such as real estate.
