XRP Fair Value Shows Potential for $18 Price at $100B Volume

XRP fair value projections suggest the token could surpass $18 if transaction volumes climb to $100 billion per day, according to an innovative valuation model built on real-world usage data.

Recent geopolitical developments, particularly the escalating tensions between Iran and Israel, have roiled global financial markets. Cryptocurrency assets, including XRP, have not been immune to the shockwaves. While many digital tokens have seen declines, XRP has notably slipped, trading at just above the critical $2 level—currently sitting at $2.01 following a 7% decrease over the past week.

This decline, however, hasn’t deterred long-time XRP supporters who argue that the current market price falls short of reflecting the asset’s true utility. Much of this optimism is rooted in Ripple’s expanding adoption in the realm of cross-border payments, prompting analysts and academics to explore more accurate methods to evaluate its intrinsic value.

One such evaluation method has emerged from the work of Stanford University’s Susan Athey and researcher Robert Mitchnick. Their model approaches crypto valuation based on the asset’s utility rather than speculative pricing. Using this framework, a digital calculator was developed to estimate XRP’s fair value under various adoption scenarios.

Inputs Behind XRP’s Valuation Model

To understand XRP’s potential value, the calculator considered a hypothetical—but potentially achievable—daily transaction volume of $100 billion, entered as $0.1 trillion. This figure, while ambitious, isn’t out of reach considering XRP’s historical transaction volume peaked at $51.7 billion on December 2, 2024. With increased integration into banking systems and financial infrastructure, achieving higher volumes seems plausible.

The model also accounted for how frequently XRP tokens would be used in this high-volume environment. It assumed an average transaction interval of 10 days per token, reflecting faster turnover in digital financial ecosystems. Furthermore, a store-of-value estimate of $115 billion was included to factor in XRP’s potential as a reserve or collateral asset within institutional frameworks.

To provide a forward-looking projection, the model examined a two-year time horizon during which adoption is expected to grow. According to some crypto insiders, Ripple’s technology could reach broader adoption within this timeframe.

On the supply side, 59 billion XRP was used as the available circulating supply in the calculation. To bring future value to present-day terms, the calculator factored a conservative interest rate of 1%, which reflects expected returns over the next two years.

Projected XRP Fair Value: A Glimpse Into the Future

By plugging in all these parameters, the fair valuation calculator estimated that XRP could be worth $18.53 per token should it support $100 billion in daily transactions. This projection underscores the token’s significant price potential—roughly nine times greater than its current market value.

While this model isn’t intended to predict precise future prices, it offers a compelling perspective on how value could be derived from underlying utility. It also lends credibility to similar long-term projections, such as those from Telegaon analysts who envision XRP achieving the $18 level by 2028.

Related: Expert Advice: Sell XRP If You’re Confused

In summary, XRP’s price today may not reflect its full potential in a future where its role in digital finance, payments, and liquidity management expands considerably. The valuation model created by academic experts gives investors, institutions, and enthusiasts a new lens through which to consider the asset’s future worth — one based primarily on usage, not speculation.