According to the discounted cash flow market valuation model, the true value of XRP could be much higher than its current market price.
Following the surge in meteors at the Bull Run in 2017/2018, it claimed a peak above $3.8. XRP performed poorly Over the years, compared to the wider market. This performance spilled on 2020/2021 Bull Market due to XRP failed In flat Reclaim the 2 dollar markthe best ever in 2018.
XRP prices under control?
Some commentators attribute this poor performance to suppression from SEC vs. Ripple LitigationIt began in December 2020. Others pointed out regular sales of XRP by Ripple, but the company's CTO David Schwartz has fiercely It was exposed These claims.
Now, the XRP breakthrough occurred last November, eventually transcending the $0.5 region and recapturing both the $1 and $2 psychological realm. Despite this strong performance, its price is currently trading at $2.34, so some market valuation models should have a fair value for XRP.
In particular, valuations using the Discounted Cash Flow (DCF) model suggest that its fair market value is $18,036 per token. It is important to note that this is not a price forecast, but an assessment of the value of XRP may be under real-world financial principles.
Built by SilverCliff Partners, this model applies core banking principles to assess XRP's potential as a global transactional asset. In particular, the capital of Valhir Presentation This assessment in 2023 as one of multiple models that assess the true value of XRP actually teeth.
The discounted cash flow model suggests that the XRP fair value is $18,036
In the context, the DCF model evaluates The Value of XRP Analyze expected cash flows from global transactions and discount them to present conditions. We assume that XRP will act as a financial pipeline and handle increasing global payments over time.
Interestingly, this analysis uses a basic global transaction volume of $104 trillion and applies an economic growth rate of 2%. Then consider a 10% discount rate to show the investment risk and the time value of money.
One of the key assumptions from this model is that XRP adoption will gradually grow over the course of a decade, starting at 2% and reaching full adoption at 100% by 2031.
These factors estimate the total current value of XRP transaction volume 915 trillion dollars. Divide this by the circular supply of XRP of 50.7 billion tokens Time The valuation provides an estimate of fair value of $18,036 per XRP.
In particular, despite fair evaluations, the DCF model has limitations. It does not take into consideration that XRP will be removed from the circulation as a valuable reservoir. However, such factors are possible actually It further reduces available supply and promotion prices. Furthermore, there is uncertainty in the model's assumptions regarding adoption rates and discount factors.
Dislamier: This content is informative and should not be considered financial advice. The views expressed in this article may contain the author's personal opinions and do not reflect the basic opinions of the code. Readers are encouraged to conduct a thorough investigation before making investment decisions. Crypto Basic is not liable for any financial losses.
