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Pipeline flow model sees XRP at $3,541 due to global adoption potential.
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Legal obstacles and price suppression may be holding XRP back from its true value.
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The future value of XRP could skyrocket, if FX adoption drives the growth in transaction volume.
XRP enthusiasts say that the token is often undervalued. The token is currently trading for $0.5126, however, the Pipeline Flow Model developed by Dr. Deon Bakers suggests that XRP should be valued at $3,541. This model combines ecological and economic concepts to estimate XRP’s potential market value. The figure seems much higher than the current price.
The model considers XRP’s position in global financial systems, and possible price suppression factors like legal battles or periodic sales by Ripple that may have hurt the market performance.
Factors behind alleged price suppression
In 2017, XRP reached a high price of $3.31, an increase of 60,000%. Since then, XRP’s performance has been lagging. Some people blame price suppression. Ripple has been focusing on its regular sales of XRP, but denies this claim.
This belief is also influenced by the long-running legal battle between Ripple, and the SEC. Investors believe that regulatory pressure has artificially capped XRP’s price growth. Despite these obstacles the Pipeline Flow Model provides a compelling perspective of XRP’s value if fully adopted.
The Pipeline Flow model
The Pipeline Flow Model estimates XRP’s fair market value through comparisons with ecological systems. In this model, XRP payment rails act as pipes that carry value. The token’s price is the diameter of each pipe. As transaction volumes rise, the pipes will need to expand to meet the demand. This will lead to a price increase for XRP.
The circulating supply (or “capacity”) of XRP affects its value, as it determines how much global transactions can be handled. The model predicts that XRP’s value could rise dramatically, particularly if a major event like the widespread adoption of foreign exchange transactions (FX) increases demand.
Read Also: XRP Market Capital Drops $5 Billion after Failing to Break Resistance
XRP’s Fair Value Potential
The Pipeline Flow Model estimates XRP’s value at around $3,541 based on different market scenarios. This assumes peak volumes of transactions, driven by high adoption and tight supply.
This value is not a price prediction. This value is a theoretical value for XRP if it were used globally. This fair value shows the enormous growth potential XRP could have if it were freed from its current regulatory and market restrictions. The model’s value suggests that XRP has been undervalued by 690,692%. This shows how much its market price could increase if all barriers were removed.
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