The XRP fair valuation calculator presents a modest increase in XRP price, considering daily trading volumes up to $250 billion.

Notably, many have long viewed XRP as undervalued. Market commentators often attribute this undervaluation to external pressures, such as the ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC). 

This lawsuit, initiated in December 2020, has entered the appeal phase. In addition to this, speculation had risen that Ripple itself could be suppressing XRP’s price. However, representatives of the company have strongly debunked these claims.  

Amid these debates, some industry leaders have made several attempts to estimate XRP’s fair market value. Among these efforts is a valuation framework developed at Stanford’s Graduate School of Business. 

Originally devised by Professor Susan Athey and Robert Mitchnick, an MBA candidate, the model incorporates specific economic factors to project XRP’s potential value. 

It has since been developed into a calculator that uses parameters such as daily transaction volume, transaction frequency, and discount rates to estimate fair pricing for XRP under different scenarios.  

XRP Fair Values at $40B, $120B and $250B Daily Volumes

Using this tool, we sought projections for XRP’s fair market value at three different daily transaction volumes: $40 billion, $120 billion, and $250 billion. The data provided details on how XRP’s price might respond to an increase in utility and adoption, leading to higher volumes.  

At a daily transaction volume of $40 billion, the calculator estimated XRP’s value at $2.43, slightly above its current trading price of $2.29. The calculation assumes XRP is transacted every 12 hours on average and considers a 1% interest rate to discount future value to the present.  

If daily transaction volumes rise to $120 billion, the fair value increases to $3.10. This scenario extends the time horizon to two years, indicating the growth required to reach such a volume. However, even at this level, XRP’s valuation remains slightly below its 2018 all-time high of $3.31.  

The top projection comes up at a $250 billion daily transaction volume. Under this scenario, the calculator estimates XRP’s value at $4.17. This projection assumes a two-year timeline. Interestingly, market analyst Ali Martinez insists XRP could claim the $4 price.

Assessment Criteria

The valuation model relies on several assumptions, including transaction frequency, the duration necessary to reach projected volumes, and the interest rate for discounting future value. It also factors in the potential for XRP to be a store of value akin to digital gold.

For context, XRP’s daily trading volume currently stands at $3.5 billion, per CoinMarketCap data. During the latest rally, XRP’s daily volume peaked at $22.6 billion on Nov. 16, far below the estimates. Nonetheless, this confirms that XRP has the capability to reach some of these levels if adoption grows.

Linda Jones, a widely followed wealth mentor in the crypto community, recently agreed with a claim that XRP could make holders rich.

The original view came from technical analyst Steph. In a tweet, he posted a chart from the analytic platform CryptoQuant to argue that “whales are all in on XRP.” Accordingly, he declared that XRP holders “are all going to be rich.”

Responding to the sentiment, Jones remarked, “Yep,” giving a thumbs-up to Steph’s view. Recall that she recently expressed that XRP could be worth $100 per token, netting current holders around 4,445% upside.

Yep. https://t.co/341vobB0oL

— Linda P. Jones (@LindaPJones) January 9, 2025

Details of Observed Whale Engagements with XRP

Notably, the chart shared by Steph contains data on inflows from XRP whales to the most liquid crypto exchange, Binance. Specifically, the chart shows a high volume of XRP whale transactions with Binance in recent weeks.

The trend picked up momentum in the last quarter of 2024 but reached an unprecedented height in the first week of January 2025.

As of January 2, whale-to-exchange flow had a transaction count of 63,968, the highest in recent years. This metric is further confirmed by exchange inflow data, with CryptoQuant recording an influx of 2.73 billion XRP to Binance on January 4. It is worth mentioning that the massive inflow was canceled out by an outflow of 2.87 billion XRP on the same day.

Meanwhile, as of yesterday, January 9, the whale flows to Binance have cooled off, reporting a transaction count of only 3,305. In terms of XRP quantity, CryptoQuant reported only 134 million XRP inflow to the exchange on January 9.

Typically, heightened inflow from whales to exchanges is a bearish signal, as it implies they are actively trading their holdings. However, Steph overlooked this factor and interpreted the development as bullish. He is likely banking on continued whale engagement with XRP to improve the token’s value in the long run.

XRP Spikes with Binance Whale Activities

Interestingly, over the last four weeks, each instance of high outflow from whales to Binance corresponded with a spike in XRP’s price. Likewise, cases of dropping flow from whales coincided with a plunge in XRP’s price.

For instance, on December 24, whale transactions to Binance spiked to 28,013. This spike mirrored XRP’s price recovery to $2.32. Similarly, when whale transactions to Binance plummeted to just 770 on December 30, XRP’s price dropped to below $2.

In the most recent cases in January, when whale-to-exchange transactions hit 63K on January 2, XRP was trading high at $2.5. Also, just as XRP’s price dropped to $2.20 yesterday, transactions by whales to Binance dropped similarly.