According to the '99 Golden Eagle model, which only considers XRP's utility as a medium of exchange, the fair market value of XRP is in the five digits.
Ripple Bitcoin has underperformed relative to the broader cryptocurrency market since falling from an all-time high of $3.31 in January 2018. But some market watchers are attributing this poor performance to the fact that SEC lawsuitIt took place from December 2020 to August this year.
Other price suppression theories have also emerged. As a result, industry commentators believe that the current XRP market price is far below its fair market value. As a result, last year, Valhill Capital executives Pooled We use multiple valuation models to determine this fair market value.
1999 Golden Eagle model
A model developed by Indian business experts called the “99-Year Golden Eagle Model” predicts that XRP's fair market value will be a staggering $13,386.The model approaches XRP's valuation from a century-long perspective.
Unlike other models that utilize XRP as a store of value, the '99 Golden Eagle Model focuses strictly on XRP's role as a store of value. Medium of exchangeThis model assumes that XRP will only be used in transactions and will not serve as a speculative investment or long-term storage asset.
It is based on the quantity theory of money. In particular, this model uses XRP for fast and efficient Transaction Speed It processes at speeds of 1,500 transactions per second (TPS) on the XRP Ledger.
XRP Supply Probability
The model also features a probabilistic scenario calculator that evaluates potential outcomes based on different circulating supply levels.
The scenarios cover possibilities such as a total supply of 100 billion, a floating supply of 83 billion, and a future floating supply of 36.9 billion XRP. Removal The majority of XRP's supply will be used for other purposes, such as long-term holding.
The model also assumes that XRP will face competition from other networks and will only capture 54% of the market in 100 years. Projections suggest that XRP’s trading value will rise gradually, with significant gains coming at later stages of adoption.
The model predicts that by 2030, XRP's utility-driven market share will process $28.5 trillion in global trade annually, with value exchanged through on-ledger transactions reaching $83.2 trillion.
it is, Circulating Supply Based on XRP’s multiple transaction processing capacity, we assume 85 billion XRP and a stable transaction speed of 1.18, which results in a projected value of XRP of $13,386 by 2121.
Limitations
Despite this optimistic outlook, the model has limitations: it does not take into account the impact of speculative interest on prices, nor does it take into account new use cases that may emerge this century.
This model takes a conservative stance by focusing solely on XRP's transactional utility, meaning that the actual price could be even higher when such factors are taken into account.
Disclaimer: This content is for informational purposes only and should not be considered financial advice. The views expressed in this article may include the personal opinions of the author and do not reflect the opinions of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
