Collateralization Model Suggests XRP's Theoretical Value at $130,000

A revolutionary valuation model from Valhil Capital positions #XRP at a staggering theoretical fair market value of $130,000, highlighting its potential role in a tokenized global economy. Despite XRP’s recent success, surpassing the $2 price mark and showing impressive performance over the last six weeks, analysts argue the asset remains undervalued. Several factors, including market suppression and the current lack of tokenization infrastructure, contribute to this disparity.

Exploring the Collateralization Model

Last year, Valhil Capital, a leading venture capital firm, developed multiple valuation models to assess XRP’s true potential. Among these, the Collateralization Model stands out, projecting an astonishing value of $130,000 for XRP under a future scenario where global financial assets are fully tokenized.

This model envisions a world where all asset classes—ranging from real estate and derivatives to central bank reserves and commodities—are digitized on blockchain platforms like the XRP Ledger (XRPL). XRP would serve as the primary token to collateralize these tokenized assets, becoming the backbone of a new financial system.

Ripple's CTO, David Schwartz, has hinted at this vision, emphasizing the XRPL's shift toward Real-World Asset (RWA) tokenization. The Collateralization Model is built on this premise, suggesting that XRP’s value would stem from its ability to secure assets globally, rather than merely facilitating transactions.

How the Model Calculates XRP’s Value

The model bases its calculations on the estimated total global wealth, which it values at approximately $5.8 quadrillion. By applying a risk adjustment factor of 1.3x, it accounts for uncertainties in tokenizing such a vast economy. The adjusted total reaches $7.5 quadrillion, representing the estimated tokenized economy by 2035.

When this figure is divided by XRP’s circulating supply of 52 billion tokens, the result is a hypothetical value of $130,000 per XRP. This valuation assumes a fully tokenized global economy, where blockchain technology underpins every financial transaction and XRP becomes the universal collateral asset.

The Significance of XRP in a Tokenized Future

The Collateralization Model highlights XRP's immense potential as a store of value within a highly interconnected financial system. Unlike other valuation approaches, this model underscores XRP’s ability to secure global assets rather than focusing solely on its use for transactions.

However, such an ambitious vision faces numerous challenges. Tokenizing all global assets would require overcoming significant technological and regulatory hurdles. Additionally, unforeseen variables—such as unaccounted asset classes or changes in global economic structures—could impact the accuracy of the model’s predictions.

Current Market Realities

Although XRP currently trades around $2.40, far below the Collateralization Model’s theoretical valuation, this analysis does not serve as a price prediction. Instead, it reflects an idealized scenario where XRP achieves its full potential in a blockchain-dominated financial landscape.

For now, XRP remains a speculative asset, but its role in tokenizing global wealth could redefine its value over time. Investors are encouraged to view these projections as theoretical insights rather than actionable financial advice.

Disclaimer: This article is intended for informational purposes only and does not constitute financial advice. The views expressed here represent independent analysis and do not reflect the opinions of this publication. Readers are urged to perform their own research before making investment decisions. This publication is not liable for any financial losses arising from investment actions.

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