- XRP could be valued at $5.38 if trading volume rises to $50 billion, according to financial estimates.
- Increased daily volume and resolution of SEC litigation could catapult XRP’s price.
Financial Equity Valuator has estimated that XRP’s value could reach $5.38 if exchange volume increases to $50 billion. This prediction is based on a valuation model developed by Susan Athey and Robert Mitchnick, which believes that the cryptocurrency could be undervalued at present. Over the past two years, the price of XRP has fluctuated below the dollar, but the valuation tool suggests that its real value could be much higher.
According to Athey and Mitchnick’s study, published in 2018, XRP’s price could increase significantly if certain market conditions aremet . With the help of a calculator based on the study’s parameters, they have projected a notable increase in XRP’s value over the next few years.
The projection is based on the increase in the total daily exchange volume of XRP to $50 billion, a figure that exceeds the highest daily volume recorded for the cryptocurrency, which was $36.95 billion in April 2021. This increase in exchange volume is considered possible if the market reaches an optimal level of activity.
There was no change to the five-day average as the interval between XRP transfers between wallets, a parameter that assesses how quickly users move their cryptocurrencies. In addition, it was estimated that XRP’s stock of value could reach $80 billion in the near future, based on its past market capitalization, which reached similar figures in 2017 and 2021.
It was estimated that XRP’s circulating supply could reach 59 billion tokens, assuming the continued release of coins from the Ripple trust, which usually releases a billion coins a month, but returns most of them to the trust, retaining only a fraction.
Finally, a standard 5% discount interest rate was used to calculate the future value of the coin. Using these metrics, the fair value calculator predicts that XRP’s price could reach $5.38 if trading volume increases significantly, which would be an increase of more than 1000% from its current price.
This potential increase in value could be influenced by the resolution of the ongoing litigation between Ripple and the SEC, which is expected to conclude in 2024. In addition, historical demand is seen to have limited XRP’s potential in recent cryptocurrency bull markets. If the crypto market enters a new bull phase, as some analysts anticipate, XRP could gain renewed interest and value in the market.
