- Analysts have made a viable case for the XRP price to hit $18,000.
- With potential spot ETF approval, the fundamentals to drive massive growth soon.
A group of analysts recently predicted in a research whitepaper published by Valhill Capital that XRP could easily hit $18,000. Although this projection sounds outrageous, anything is possible regarding valuation, given the speculative nature of cryptocurrencies.
Is $18K Possible for XRP?
Notably, Vahil Capital released the “Comprehensive Approach To Determine The Fair Market Value Of XRP” whitepaper in June 2023. This comes a month before Judge Analisa Torres declared that XRP is “not a security.”
In the whitepaper, multiple authors presented five valuation models to evaluate XRP’s long-term price. “XRP Valuation Model #4” became the ideal outlook based on token utility and future global adoption.
This model utilized the Discounted Cash Flow (DCF) approach, which assumes Ripple would handle many global transactions in the next 10 years. It also assumes fees on the XRP Ledger (XRPL) would spike while replacing traditional remittance systems like SWIFT.
The valuation analysis considers data like Base Global transaction volume hitting $104 trillion and an economic growth rate of 2% between 2023 and 2032. Additional data include a 10% applied discount rate, $915 Trillion total transaction present value, and $50.7 billion XRP circulating supply. If these projections hold, XRP is anticipated to reach $18,036.
Taking the model at face value in 2025, analysts have analyzed if the expected adoption rate is progressing as predicted. XRP is often touted as a secure payment method for cross-border transactions. However, no confirmed authoritative source exists of any US bank incorporating XRP for cross-border payments or internal transactions.
Meanwhile, Ripple’s global payments network, RippleNet, is reported to have collaborated with US banks like JPMorgan Chase, Wells Fargo, Bank of America, and Citigroup. However, only PNC Bank and Bank of America have definitive evidence-based partnerships.
These updates highlight the speculative nature of XRP developments.
Upsides for XRP
On the bright side, XRP price has performed well over the past 12 months, fueling optimistic sentiments. As of writing, XRP price was trading at $2.27, up 5.64% in the last 24 hours, with a market cap of over $142 billion. This growth pares off the losses in recent times amid a broader market downturn.
Anticipations for the potential launch of an XRP-based ETF also indicated a potential upside for XRP. As reviewed in our recent publication, the US Securities and Exchange Commission (SEC) has acknowledged multiple spot XRP ETFs filed by various fund managers.
Bitwise Chief Investment Officer Matt Hougan believes XRP is a prime candidate for an ETF, especially considering its resilience amid regulatory challenges. In a recent update CNF examined, Hougan added that President Donald Trump’s pro-crypto stance could lead to the approval of XRP ETFs.
However, regarding adoption, RippleNet and XRP are nowhere close to the projections made in the white paper.
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