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New research from financial analysts at Valhil Capital suggests the <\/span>XRP <\/span><\/a>price is far undervalued than what it should be. Analysts have developed pricing models that put the value of XRP way higher than its current price of $0.5853, possibly <\/span>even surpassing Bitcoin<\/span><\/a>.\u00a0<\/span><\/p>\n According to the research paper from Valhil Capital, which evaluated six distinct pricing models, XRP\u2019s price should not be trading for less than a dollar but somewhere between $9.81 and $513,000.<\/span><\/p>\n It\u2019s been well established that the XRP price has been held back over the past few years in large part due to the ongoing lawsuit between Ripple Labs, the company behind the cryptocurrency, and the SEC. This legal uncertainty made many crypto exchanges and investors hesitant to buy and trade XRP, leading to the cryptocurrency being left behind during the 2021 crypto market bull run.<\/span><\/p>\n Unlike most cryptocurrencies, which aim to replace the traditional method of banking, XRP was designed by Ripple <\/span>to help banks move money<\/span><\/a> quicker and cheaper than current methods. Using this transaction function of XRP and its use as a store of value, Valhil Capital <\/span>created six different valuation models<\/span><\/a> to determine XRP\u2019s fair market value.<\/span><\/p>\n The first model, called the Pipeline Flow Model, considered XRP\u2019s function as a mode of transaction as well as a store of value, putting its fair value in this case at $3,541. The second model called the Athey and Mitchnick Model, also used the transaction and store of value function to put XRP\u2019s current fair price at $4,813.\u00a0<\/span><\/p>\n The next two models looked at the transaction function alone. These models, named the 99-Year Golden Eagle Model and the Discounted Cash Flow Model, determined XRP\u2019s fair market price to be $13,368 and $18,036, respectively.\u00a0<\/span><\/p>\n Using XRP\u2019s function as a store of value, the last two models, called the Collaterization Model and Quantum Liquidity Model, determined XRP\u2019s current fair market price to be far above the price of Bitcoin, putting it at $122,580 and $513,518 respectively.\u00a0<\/span><\/p>\n XRP trading <\/span>has since resumed<\/span><\/a> on US-based crypto exchanges, as the cryptocurrency has been <\/span>deemed not to be a security<\/span><\/a> by a federal judge. Despite its <\/span>challenges with the SEC<\/span><\/a> since 2020, the cryptocurrency has grown to become the 5th-largest in terms of market cap.\u00a0<\/span><\/p>\n Some of XRP\u2019s fair market prices determined by Valhil Capital might seem extravagant, but some of them resonate with <\/span>current predictions<\/span><\/a> and <\/span>sentiment in the XRP community<\/span><\/a>. On-chain data has shown that whale and shark investors <\/span>have increased their holdings<\/span><\/a> in the past few days. On the other hand, Ripple\u2019s latest periodic release of 1 billion XRP tokens from escrow could potentially reduce this ongoing buying pressure.<\/span><\/p>\nResearch on XRP\u2019s Fair Value<\/h2>\n
Current State Of The XRP Price<\/h2>\n