XRP Valuation Model Predicts $15 Price Surge in Two Years

The Athey and Mitchnick XRP valuation model’s calculator forecasts a $15 value for XRP in the next two years, considering a $40 billion volume, among other criteria.

Despite its potential to revolutionize global payments, XRP is trading at $0.6246, prompting some industry commentators to assert that the token is significantly undervalued.

Stanford Duo’s XRP Valuation Model Predicts $15 Price in Two Years

In 2018, Stanford professor Susan Athey and Stanford MBA candidate Robert Mitchnick introduced a research paper to assess XRP’s fair market value. They considered factors such as supply and demand and the underlying technology.

The paper projected XRP’s fair market value to be between $6.37 and $32.91. Bitcoin’s fair market value was estimated by the paper to be between $45,438 and $93,621.

Following the release of their evaluation model, a web-based calculator utilising this model emerged. Recently, the calculator projected XRP’s value in the next two years, yielding a price estimate of $15.

The calculator allows users to input data for six key XRP metrics. It guides the assessment of XRP’s future price based on the provided data.

XRP’s Metrics Analysis

The first metric, “total estimated daily transaction volume,” reflects XRP’s 24-hour volume, set at $0.04 trillion ($40 billion). $40 billion seems achievable, given XRP’s highest 24-hour volume of $36.95 billion on April 6, 2021.

The second metric, “average time (in days) between transactions per one XRP,” maintains the default value of 5r. It represents the average number of days before a market participant transacts 1 token.

The third crucial parameter focuses on XRP’s total valuation as a store of value, set at $0.8 trillion ($800 billion). This is equivalent to 10% of the estimated value of gold.

The fourth benchmark designates two years as the projected timeframe for XRP to reach the specified volume. For the fifth parameter, the calculator projects XRP’s circulating supply to reach 58.8 billion tokens within the set timeframe.

Ripple maintains 200 million XRP in circulation monthly after the 1 billion escrow release for 24 months (4.8 million XRP). This is in addition to the current circulating supply of 54 million tokens.

The sixth metric gauges the average XRP interest rate for calculating the present value of future cash flows or values. This is retained at the default of 5.

According to these metrics, the calculator predicts that XRP will achieve a price of $15.43 in two years. Considering XRP’s current price of $0.6246, this projected value signifies a substantial 2,370% increase.

While some metrics, like the estimated store of value, may pose challenges, others, such as the 24-hour volume, are deemed more likely to materialise.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.