A new study values XRP between $3,500 and $22,000, sparking significant attention from the crypto community as the crypto continues to build momentum.
A recent study has generated considerable interest in the crypto community by estimating XRP’s fair market value to be between $3,500 and $22,000.
Conducted by Jimmy Vallee and Molly Elmore of Valhil Capital, this broad valuation underscores XRP’s potential as a significant player in global value transfer.
The study employs six different valuation models to assess XRP’s worth, each presenting a unique perspective on its role as a layer-1 asset.
Under optimistic scenarios, XRP could be valued as high as $22,000, with some models even suggesting prices of $122,000 and $513,000.
These projections largely hinge on the assumption that the XRP Ledger will become a widely adopted protocol for international transactions.
Vallee and Elmore’s analysis includes various methodologies to estimate XRP’s market value.
For instance, the Athey & Mitchnick Models assess XRP based on different global liquidity scenarios, predicting values of $9,000 in a $1 quadrillion scenario and $4,800 in a $530 trillion scenario.
Another approach, the Bakkes Pipeline Flow model, estimates XRP’s value at $3,500, focusing on its role in facilitating global transactions.
The report also examines collateralization models, projecting a value of $12,200 with 100% collateralization and $1,220 with 10% collateralization.
Discounted Cash Flow (DCF) models further refine these estimates, suggesting that XRP could reach $21,900 with a 3% discount rate.
These diverse methodologies highlight XRP’s potential across various financial contexts.
The timing of this study aligns with significant political changes in the United States.
Following Donald Trump’s election victory, major crypto companies like Ripple and Coinbase are hopeful for a more favorable regulatory environment.
Trump has expressed a pro-crypto stance and plans to replace SEC Chair Gary Gensler, which could prompt a reevaluation of ongoing legal cases against these firms.
Paul Grewal, Coinbase’s Chief Legal Officer, conveyed optimism about potential regulatory shifts.
He stated in an interview, “I think the new administration will take a fresh look at all the existing crypto cases brought under Gary Gensler and distinguish between the ones aimed at what are clearly scams and fraud and ones that are not.”
The study’s median value for XRP stands at around $12,822, with a mean value of $61,231, reflecting a positive outlook among analysts.
The highest estimate from the Quantum Liquidity Model suggests XRP could reach $513,000 if its utility as a store of value is fully realized.
While these projections are ambitious, they indicate significant potential upside if XRP achieves widespread adoption.
Coinbase CEO Brian Armstrong also viewed the election as a “huge win for crypto,” noting that support for cryptocurrency played a key role in Bernie Moreno’s victory over Senator Sherrod Brown in Ohio, signaling a broader congressional shift toward pro-crypto policies.
This political backing could be vital in driving XRP’s adoption and enhancing its market value.
The shifting regulatory landscape is a crucial factor impacting XRP’s future.
With the possibility of a crypto-friendly SEC leadership, the industry anticipates clearer regulations and fewer enforcement actions.
Grewal emphasized the need for the SEC to engage with the crypto community, urging, “Stop suing crypto.
Start talking to crypto.
Initiate rulemaking now.
There’s no reason to wait.”
Ripple’s leadership has also put forth a 100-day checklist for the new administration, calling for prompt actions to improve the SEC’s approach to cryptocurrency regulation.
By advocating for experienced individuals like Chris Giancarlo, Brian Brooks, or Dan Gallagher, Ripple aims to create a more supportive environment for XRP and the broader crypto ecosystem.
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Also Read: A Crypto Analyst Now Predicts XRP Will Flip Ethereum Soon
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