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HomeCrypto NewsMarketExtensive Analysis Shows XRP Fair Market Value Ranges from $3.5K to $22K

Extensive Analysis Shows XRP Fair Market Value Ranges from $3.5K to $22K


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XRP is the biggest victim of the multi-year Ripple vs. SEC litigation, leading experts to believe its price should be much higher than it is now.

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Jimmy Vallee, MD at Valhil Capital, and Molly Elmore, Valhil Capital’s Blockchain Businesses CMO, recently published a comprehensive two-year research Whitepaper. The study aimed to ascertain the fair market valuation of XRP, revealing that its fair value spans from $3.5K to $22K.

Elmore shared the Whitepaper through her official Twitter handle, further highlighting the crucial points surrounding the research.

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The Whitepaper is the product of an evaluation of XRP’s true worth using six models, namely:

  • Pipeline Flow Model.
  • Athey and Mitchnick Model.
  • 99-Year Golden Eagle Model.
  • Discounted Cash Flow Model.
  • Collateralization Model.
  • Quantum Liquidity Model.

The study also aims to expose the damaging effects of the SEC lawsuit.

Included in the research are variables such as Global Transaction Volume, Daily transaction value, XRP circulating supply, XRP transactions per second, etc.

Six different valuation model
Image Source: https://twitter.com/mollyelmore22/status/1666489131394818053

The SEC Lawsuit and its Effects on XRP

Following the US SEC’s legal action against Ripple regarding the sale of XRP, a chain reaction of sell-offs and delistings ensued, significantly affecting the price of XRP. Jimmy Vallee observed distinct elements within the case that sparked skepticism regarding the true intentions behind the lawsuit.

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In response to these developments, Valhil Capital sent a proposal to the Federal Reserve, suggesting the sale of its XRP at a price exceeding the current market value. This move aimed to highlight the potential presence of “regulatory capture” and prompt a discussion on its implications.

This raised logical questions about the financial damages caused by the SEC’s lawsuit and the hindrance it posed to the adoption of XRP’s intended use case, sending Valhil Capital on a quest to determine XRP’s fair market value.

What is XRP’s Fair Market Value?

To further explore this notion, Valhil Capital formed a Confidential Committee. In late 2022, a smaller Valuation Committee comprising quantitative and financial valuations experts was established.

Over several months, the Valuation Committee developed six different valuation models to determine XRP’s fair market value. 

Fair market value refers to the estimated value of an asset based on various factors, including market conditions, supply and demand, and other relevant considerations. It differs from market value, which is the current price of the asset in the market. Notably, the market value is typically affected by external factors such as favorable or unfavorable news.

Elmore clarified that the estimates from the six models were not future price forecasts for XRP but rather assumptions of what the asset’s price would have been if the SEC lawsuit had not occurred.  

The results of the valuation models show that, excluding outliers, XRP’s fair value ranges from $3.5K to $22K. The lowest value is a 668,604% increase from XRP’s current price, while the highest is 4,203,186% higher than the current market price.

XRP fair market value
Image Source: https://twitter.com/mollyelmore22/status/1666489137157873664

This result underscores the significant impact of the SEC lawsuit, as numerous institutions that could have potentially utilized XRP had to refrain from doing so to mitigate legal risks. However, it is crucial to acknowledge that these estimates are subject to differing opinions and criticisms from certain quarters.

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Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.



Albert Brown
Albert Brownhttps://thecryptobasic.com/
Albert Brown is a cryptocurrency investor and journalist who has been in the nascent space since 2017. His love and passion for technological innovations made him delve deeper into the world of blockchain and cryptocurrencies. As a journalist, Brown has written on several crypto-related topics that have been referenced by popular industry players like Tyler Winklevoss, Binance CZ, etc.

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