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Crypto analyst Jack has highlighted a valuation framework that estimates the XRP price at $18,000. This is derived from the discounted cash flow approach, which emphasizes the XRP Ledger’s functionality and XRP’s position as the primary token.
Valuation Framework That Estimates The XRP Price At $18,000
In a post on X, Jack disclosed that the discounted cash flow model indicates the fair value of the XRP price to be $18,036. He remarked that the globe is transitioning towards tokenization and that the momentum is inexorable. According to him, trillions of dollars in investment could surge into the XRP Ledger, fueled by real-world assets (RWAs).
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The valuation framework suggested that the XRP Ledger could be perceived as a “channel of value,” where the value traversing through the network can be likened to cash flow within a conventional business ecosystem. This could enhance XRP’s functionality, potentially driving the XRP price to $18,000.
Interestingly, there exists the potential for the XRP price’s fair value to exceed $18,000 according to this discounted cash flow model. This could occur if economic growth rates increase as crypto adoption ignites new enterprises and economic frameworks. These new ventures and economic frameworks could promote greater acceptance for XRP and a consequent increase in price.
Notably, the adoption of crypto, particularly within traditional finance (TradFi), has been gaining traction, enhancing XRP’s acceptance. This encompasses the introduction of multiple XRP ETFs, which signifies a positive outlook for the XRP price. Meanwhile, Ripple has broadened its operations amidst the surge in crypto acceptance. This includes the acquisition of the prime broker Hidden Road, with the crypto firm already investigating ways to incorporate XRP products on the platform.
Community Responds To Price Forecast
The valuation framework for the XRP price ignited responses among XRP community members. Community participant XR mentioned that valuation approaches often project extreme figures that typically depend on ideal scenarios that seldom occur. The community participant added that tokenization on the XRPL may indeed attract substantial capital inflows, but insisted that it won’t determine genuine value.
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Instead, XR asserted that adoption, regulation, and liquidity depth will establish the true value of the XRP price. The community participant further noted that lasting growth will invariably follow verified utility.
Meanwhile, another community member remarked XRP might not necessarily be utilized for transactions even if trillions are transacted on the XRP Ledger. They stated that XRP will be employed to cover gas fees, but it won’t be the currency used for transactions. Hence, trillions flowing into the XRPL may not significantly affect the XRP price.
As of the time of this writing, the XRP price is trading around $2.2, down over 4% in the last 24 hours, according to data from CoinMarketCap.
Featured image from Freepik, chart from Tradingview.com
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