Set the collateral model to the fair market value of XRP

For 122,580 US dollars

According to the evaluation of the Valhil Capital collateral model, the fair market value of XRP has exceeded the significant price level of $122,000.

XRP is one of the best-performing currencies in the past six weeks, recently returning and maintaining its level at $2. However, some comments believe that the trading price of altcoins is still below their fair market value due to various factors suppressing the price.

Collateral Model

It is worth noting that last year, venture capital firm Valhil Capital prepared several models in an attempt to evaluate the fair market value of XRP under specific conditions. Interestingly, a bold valuation model, namely the collateral model, suggests that the fair market value of XRP could be $122,580.

This assessment foresees the tokenization of the future global financial system, with XRP as the foundation for global asset collateral. The model, developed by Valhil Capital, explores the impact of global wealth tokenization on XRP as a store of value.

Interestingly, the collateral model assumes that all global assets, including real estate, derivatives, central bank reserves, and commodities, are tokenized on XRPL (the underlying blockchain of XRP). Ripple's Chief Technology Officer David Schwartz has confirmed that XRPL is moving towards RWA tokenization.

This ambitious vision foreshadows the future where blockchain technology will represent the entirety of global wealth. It is worth noting that the goal is to establish XRP as the universal collateral asset in a highly interconnected, tokenized financial system.

In addition, the method emphasizes the ability of XRP to protect assets rather than facilitate transactions. The assumptions of this model include the complete tokenization of global wealth and the use of XRP as collateral for this value.

The fair market value of XRP is $122,580.

The assessment takes into account the total global wealth, estimated at $53 trillion. When applying a risk-adjusted rate of 1.25 and calculating the present value of tokenized assets, this model estimates that the total tokenized economy will reach $62 trillion by 2030.

It is worth noting that dividing this value by the circulating supply of 50.7 billion tokens of XRP yields an estimated value of $122,580 per token.

The staking model highlights the potential of XRP in the tokenization space. However, challenges remain. Tokenizing all assets on a global scale will face technical and regulatory setbacks. In addition, unknown values that are not included in the analysis may affect the accuracy of this estimate.

Despite these challenges, the model points out the potential for a blockchain-based future where the value of XRP is synchronized with its utility. Currently, the trading price of XRP is 2.4 US dollars, far below this fair market valuation. However, this is not a price prediction, but an analysis of the theoretical fair value of XRP under ideal conditions.