99 Year Golden Eagle Model Puts XRP Fair Market Value at $13,386
According to the 99 Year Golden Eagle Model, which focuses on XRP’s utility as a medium of exchange, the fair market value of XRP is estimated to be $13,386. Despite XRP’s underperformance in the crypto market, some attribute this to the SEC lawsuit that took place from December 2020 to August 2021. This has led industry commentators to believe that the current XRP market price is significantly below its fair market value. Last year, Valhil Capital executives pooled multiple valuation models to determine this fair market value.
The 99 Year Golden Eagle Model, developed by a business professional from India, projects XRP’s fair market value based on a century-long perspective. Unlike other models that consider XRP as a store of value, this model strictly focuses on XRP’s role as a medium of exchange. It assumes that XRP will only be used for transactions and not as a speculative investment or long-term storage.
The model builds on the Quantity Theory of Money and emphasizes XRP’s fast and efficient transaction speed on the XRP Ledger, capable of processing 1,500 transactions per second (TPS).
The model also incorporates probabilistic scenario calculations, considering different circulating supply levels and the possibility of removing a significant portion of XRP’s supply for other purposes. It assumes that XRP will face competition from other networks but still captures 54% of the market over the 100-year period. The projections suggest that XRP’s transactional value will gradually increase, with substantial gains in later stages of adoption.
By 2030, the model predicts that XRP’s utility-driven market share will facilitate $28.5 trillion in global trade annually, with the value exchanged via transactions on the ledger expected to reach $83.2 quadrillion. The model assumes a circulating supply of 85 billion XRP and a steady transaction velocity of 1.18.
Despite this optimistic outlook, the model has limitations. It doesn’t account for price impacts due to speculative interest or potential new use cases that may emerge over the century. The model takes a conservative approach by focusing solely on XRP’s transaction utility, suggesting that the true price could be even higher if these factors are considered.