Research Paper Uncovers XRP’s Fair Market Value

• Valhill Capital has unveiled 6 different models for estimating XRP’s price.
• The estimated XRP price projection ranges from $9.81 to $513,000.

A recent research paper by Valhill Capital, a prominent equity firm, has set a new benchmark in understanding the fair market value of XRP, the cryptocurrency closely associated with Ripple Labs Inc. 

The report presents six pricing models, revealing a monumental valuation range from $9.81 to an astounding $513,000. This research paper provides a unique perspective on XRP’s fair value and unveils its enormous wealth potential.

The Pipeline Flow Model

Valhill Capital’s first model, the Pipeline Flow Model, employs a novel approach that draws from the dynamics of biological and environmental systems. It assumes a “big bang” event that rapidly funnels Foreign Exchange (FX) volume onto the XRP Ledger (XRPL). 

The model includes a dynamic pipeline that adjusts based on the volume of value flowing through the financial ecosystem. However, it accounts for the possibility of a large early increase leading to a sell-off and price decrease later on. This model calculates the fair market value of XRP at $3,541.

The Athey & Mitchnick Model

The Athey & Mitchnick Model, initially developed in 2018, focuses on XRP’s valuation as a cross-border payment and foreign exchange (FX) transaction currency. It considers the utility aspect (transactions) and the role of XRP as a store of value. 

Assuming that 10% of global transactions will run on XRPL by 2030, this model quantifies the influence of adoption rates on the coin’s value. It excludes the XRP held in escrow for store-of-value use. The calculated XRP price in this model is $4,813.

The 99 Year Golden Eagle Model

This model employs an accounting-based approach, emphasizing the impact of transactions on XRP’s value. 

It assumes that XRP is exclusively a transaction currency and not used for speculative investing or as a store of value. The model takes a long-term view of the asset’s value, considering that most global reserve currencies have a lifespan of 100 years. It assumes a consistent time value of money across the globe with a growth rate of 10%. 

Under these assumptions, the XRP price is estimated at $13,386.

Discounted Cashflow Model

The Discounted Cashflow (DCF) Model is a widely used method for understanding the present value of future money flows. In this model, the base volume of transactions is derived from the current global GDP. 

It calculates XRP’s price at $18,306.

Collateralization Model

The Collateralization Model determines the value of all assets tokenized on the network, essentially encompassing “ALL THE MONEY” in the world. This model takes into account documented resources to calculate this value. The model estimates the XRP price at an impressive $122,580.

Quantum Liquidity Model

The Model emphasizes that the value of XRP must be high enough to ensure long-term financial stability. It assumes that financial systems naturally gravitate towards the most efficient and secure ledger for moving and storing value. Under these considerations, the XRP price is calculated at a remarkable $513,158.

Overall, Valhill Capital’s array of models enriches users’ understanding of XRP’s potential worth by examining it from various angles. These models contribute to a more comprehensive view of XRP’s role in the global financial ecosystem, ultimately encouraging a deeper appreciation of the crypto’s multifaceted value proposition. 

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