- Valhill Capital’s research paper suggests a substantial disparity between XRP’s current market price at $0.5759 and its fair value.
- XRP’s subdued performance is linked to long-term price suppression and ongoing XRP escrow releases by Ripple.
- Six valuation models propose varied XRP fair market values, ranging from $9.81 to $513,000.
Private equity investment firm Valhill Capital has revealed XRP’s fair market value, positioning it far above its current market price. As of now, XRP is trading at a modest $0.5759, a significant 82% drop from its peak of $3.31 in January 2018.
Many in the market attribute XRP’s underperformance to persistent price suppression, an issue that has haunted the cryptocurrency for an extended period. Earlier speculations linked this suppression to the legal battle between Ripple and the US Securities and Exchange Commission (SEC). However, even after achieving legal clarity in July 2023, XRP continued to trade at surprisingly low prices.
Valhill Capital’s research paper delves into six distinct valuation models, each providing a unique perspective on XRP’s fair market value. The Pipeline Flow model sees a shift in global foreign exchange, boosting XRP to $3,541, while the Athey & Mitchnick Model projects a 10% market capture, envisioning $4,813 by 2030. The 99-Year Golden Eagle Model, focusing on XRP as a medium of exchange, forecasts $13,386 in 99 years.
Valuing XRP as a cash-generating asset, the Discounted Cash Flow model predicts $18,036. The Collateralization Model takes an extreme approach, placing XRP at $122,580 through global money tokenization. The Quantum Liquidity Model values XRP as a stability-ensuring asset, aiming for $513,158 under specific conditions.
The disparity in these valuations suggests a wide spectrum of potential for XRP’s future trajectory. Interestingly, removing the outliers at $9.81 and $513,000 narrows the range to a more conservative $3,500 to $22,000.
