The XRP fair valuation calculator estimates that XRP price could reach the double-digit region at an ambitious $100 billion volume.
Tensions in the Middle East, especially the growing conflict between Iran and Israel, have rattled global markets. In the crypto scene, major assets like XRP have taken a hit.
In particular, XRP has struggled to hold the important $2 mark, trading for $2.01, having dropped 7% in the past week. Even with this dip, many still believe XRP price doesn’t reflect its real value. Its expanding role in cross-border payments has fueled this belief and inspired new ways to measure what XRP should truly be worth.
One such model comes from Susan Athey and Stanford researcher Robert Mitchnick. Specifically, their research presents a method for valuing crypto assets based on how much utility they provide.
Parameters Used
Interestingly, a calculator built from this model helps estimate a fair value for XRP using real-world data and expectations. We used that calculator to see what XRP could be worth if it handled $100 billion in daily transaction volume, and the result may surprise you.
We started with a projected daily transaction volume of $100 billion, entered into the calculator as $0.1 trillion. Notably, the highest daily volume XRP has recorded in recent history is $51.7 billion, observed on Dec. 2, 2024. As more banks and financial institutions start using XRP to move money, a $100 billion daily volume could become possible.
Next, we added the average time between transactions for one XRP token. We used 10 days to show how often a token might change hands in a fast-moving financial system. If banks or payment processors use XRP to settle multiple transactions daily, the time between uses could drop even further.
Moving forward, we then entered $115 billion for the store of value estimate. Also, we chose a two-year timeframe to represent when this level of usage and adoption might realistically happen. Some pundits believe XRP adoption could take off within that window.
Meanwhile, for the supply figure, we used 59 billion XRP. However, to adjust the future value back to today’s terms, we applied a modest 1% interest rate, pointing to expected returns over the next two years.
XRP Price At a $100B Volume
Interestingly, once we entered all these numbers, the calculator gave a price estimate of $18.53 per XRP. That’s nearly ten times its current price, showing how much room XRP could have to grow if it reaches this level of use.
It is important to note that this model doesn’t promise where XRP price will go, but it presents a way to think about its value based on real-world utility. Notably, Telegaon analysts also expect XRP to reach the $18 level, but by 2028, three years from now.
DisClamier: 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 opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
