XRP has long been seen by many as undervalued, and a fair valuation calculator is shedding light on what its price might look like if daily trading volumes grow significantly. The calculator explores scenarios where XRP’s daily transaction volume hits $40 billion, $120 billion, and even $250 billion, providing insight into its potential growth as adoption increases.

However, discussions about XRP’s value often come with baggage. Many believe its price has been held back by external factors, including Ripple’s legal battle with the U.S. Securities and Exchange Commission (SEC), which started in December 2020 and is now in the appeals phase. There’s also been speculation that Ripple itself might be keeping XRP prices low—claims the company has firmly denied.

To get a clearer picture of XRP’s potential, a valuation model originally developed at Stanford’s Graduate School of Business has been applied. Created by Professor Susan Athey and MBA candidate Robert Mitchnick, this model considers economic factors like transaction volume, frequency, and discount rates to estimate fair market value.

How XRP Could Perform at Different Daily Volumes

Using this calculator, here’s how XRP’s price might change if daily transaction volumes hit key milestones:
1. At $40 Billion in Daily Volume
If XRP’s daily transaction volume reaches $40 billion, its fair value could be $2.43. That’s slightly above its current price of $2.29. This projection assumes that XRP changes hands about every 12 hours, with a 1% interest rate applied to account for the value of time.
2. At $120 Billion in Daily Volume
With daily transaction volumes tripling to $120 billion, XRP’s estimated value would rise to $3.10. While this would reflect significant growth, it still falls just short of its 2018 all-time high of $3.31. The model suggests this volume could take two years to achieve.
3. At $250 Billion in Daily Volume
Under the most optimistic scenario, with XRP’s daily transaction volume reaching $250 billion, its fair value could climb to $4.17. Market analyst Ali Martinez believes that, with the right conditions, XRP could realistically hit the $4 mark.

What the Model Assumes

The calculator makes a few key assumptions, including:
• How frequently XRP is transacted.
• How long it might take to hit higher transaction volumes.
• Interest rates used to account for future value.

It also considers XRP’s potential to act as a “store of value,” similar to digital gold. For context, XRP’s current daily trading volume is around $3.5 billion. During a recent rally, the volume spiked to $22.6 billion on November 16, which shows its potential to grow—but also highlights how far it still needs to go to reach these levels.

Disclaimer: This content is for informational purposes only and should not be considered financial advice. Always do your own research before making investment decisions.