XRP Price Undervalued and Potential to Surpass Bitcoin, Research Shows
New research conducted by financial analysts at Valhil Capital reveals that the current price of XRP is significantly undervalued. The study suggests that XRP should be trading at a value much higher than its current price of $0.5853, with some models even indicating that it could surpass Bitcoin in value.
Research on XRP’s Fair Value
The ongoing lawsuit between Ripple Labs, the company behind XRP, and the SEC has hindered the cryptocurrency’s price growth in recent years. However, Valhil Capital developed six different pricing models to determine XRP’s fair market value.
These models took into account XRP’s function as a transaction tool for banks as well as its potential as a store of value. The valuations ranged from $3,541 to $513,518, with each model considering different factors and aspects of XRP’s functionality.
Current State of the XRP Price
After being deemed not a security by a federal judge, XRP trading has resumed on US-based crypto exchanges. Despite the legal challenges it faced, XRP has become the fifth-largest cryptocurrency in terms of market capitalization.
While some of Valhil Capital’s fair market prices may seem extravagant, they align with current predictions and sentiment within the XRP community. On-chain data indicates that large investors have been increasing their holdings recently. However, Ripple’s periodic release of 1 billion XRP tokens from escrow could potentially reduce buying pressure.
Hot Take: XRP’s Potential for Growth
The research conducted by Valhil Capital suggests that XRP is currently undervalued and has the potential to surpass Bitcoin in value. While these valuations may seem ambitious, they reflect the positive sentiment within the XRP community and current market trends. As XRP continues to overcome regulatory hurdles and gain wider adoption as a transaction tool for banks, its price could experience significant growth. However, it’s important to consider the potential impact of Ripple’s token releases on the market. Overall, XRP’s future looks promising, and investors should closely monitor its performance.
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