According to the 99-year Golden Eagle model, which only considers XRP’s utility as a medium of exchange, the fair market value of XRP extends into the five-digit range.
XRP has lagged the broader cryptocurrency market since falling from its all-time high of $3.31 in January 2018. However, some market observers attribute this underperformance to the SEC Prosecutionwhich took place from December 2020 to August of this year.
Other price suppression theories have also emerged. As a result, industry commentators believe that the current market price of XRP is well below its fair market value. As a result, last year, Valhil Capital executives pooled several valuation models to determine this fair market value.
The 99-year-old Golden Eagle model
A model developed by an Indian business professional, known as the 99 Year Golden Eagle Model, predicts that the fair market value of XRP will reach a staggering $13,386. This model approaches the valuation of XRP with a century-long perspective.
Unlike other models that incorporate the use of XRP as a store of value, the 99-year Golden Eagle model focuses strictly on XRP’s role as a a means of exchangeThe model assumes that XRP will have exclusive utility in transactions and will not serve as an asset for speculative investments or long-term storage.
It is based on the quantity theory of money. Notably, with this, the model highlights the speed and efficiency of XRP transaction speed on the XRP Ledger, processing at a rate of 1,500 transactions per second (TPS).
XRP Supply Probabilities
The model also includes a probabilistic scenario calculation, assessing potential outcomes under varying levels of circulating supply.
The scenarios cover possibilities such as a total supply of 100 billion, a liquid supply of 83 billion, and a future liquid supply of 36.9 billion XRP. It also considers the possibility of deletion of a large portion of the XRP supply for other purposes, such as long-term holdings.
The model also assumes that XRP will face competition from other networks, capturing only 54% of the market over the 100-year period. Its projections suggest that XRP’s transaction value will increase gradually, with significant gains occurring in the later stages of adoption.
By 2030, the model predicts that XRP’s utility-driven market share will handle $28.5 trillion in global trade annually, with the value exchanged via ledger transactions expected to reach $83.2 quadrillion.
This assumes a circulating supply of 85 billion XRP and a stable transaction speed of 1.18, based on XRP’s ability to process multiple transactions. As a result, the projected value of XRP by 2121 is $13,386.
Boundaries
Despite this optimistic outlook, the model has its limitations. It does not account for price impacts due to speculative interest, nor for potential new use cases that may emerge over the course of the century.
The model takes a conservative stance by focusing only on the utility of XRP transactions, meaning the actual price could be even higher if such factors are taken into account.
Disclaimer: This content is informational and should not be considered financial advice. The opinions expressed in this article may include the personal opinions of the author and do not reflect the opinion of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
