$XRP Theoretical Fair Market Value: A Deep Dive into the Collateralization Model

The Collateralization Model has set a theoretical fair market value for XRP at an astonishing $122,580 per token. This evaluation considers the world’s total wealth, estimated at $5.3 quadrillion. By applying a 1.25x risk adjustment ratio and calculating the present value of tokenized assets, the model projects a total tokenized economy of $6.2 quadrillion by 2030. Dividing this value by XRP’s circulating supply of 50.7 billion tokens results in the projected value.

The model emphasizes $XRP potential in the tokenization scene. However, several challenges remain. Tokenizing all assets globally would face significant technological and regulatory setbacks. Additionally, unknown values not included in the analysis could affect the accuracy of this valuation.

Despite these challenges, the model suggests the possibility of a blockchain-based future where XRP’s value aligns with its utility. Currently, $XRP trades at $2.4, far below this theoretical fair market estimate. It is important to note that this is not a price prediction but rather an analysis of XRP’s potential value under ideal conditions.