XRP Valuation Model Predicts $18,000 Price Amid Community Skepticism

Crypto analyst Jack has proposed a valuation model suggesting the XRP price could reach $18,000. This is based on the discounted cash flow model, highlighting the XRP Ledger's utility and XRP's role as a native token.

Key Points from the Valuation Model

The model suggests XRP's fair value could be $18,036, driven by the global trend towards tokenization and real-world asset (RWA) integration.
XRP Ledger is viewed as a "pipeline of value," with potential value similar to cash flow in traditional businesses, boosting XRP's utility.
XRP price could exceed $18,000 if economic growth rates increase due to crypto adoption fostering new businesses and economic models.
The rise in crypto adoption within traditional finance, including XRP ETFs, positively impacts XRP's adoption.
Ripple's business expansion includes acquiring the prime broker Hidden Road to explore integrating XRP products.

Community Reactions

Some community members believe valuation models often assume ideal conditions that rarely occur. They emphasize adoption, regulation, and liquidity depth as key determinants of XRP's true value.
Others argue that even if trillions are transacted on the XRPL, XRP might primarily serve for gas fees and not as the transaction currency, limiting its price impact.

Currently, the XRP price is approximately $2.2, having decreased by over 4% in the last 24 hours according to CoinMarketCap data.