XRP fair market value is at $4813 according to the Athey-Mitchnick model

XRP has disappointed investors in recent years. In 2018, the coin reached an all-time high of $3.40, but since then the price has never come close to that level again.

Realistic value according to Athey-Mitchnick model

Recently, analysts have performed a valuation of XRP based on the Athey-Mitchnick model, a model developed by economists Susan Athey and Robert Mitchnick. This model provides insight into the potential market value of XRP, assuming the coin is not influenced by external factors, such as the ongoing lawsuit with the US Securities and Exchange Commission (SEC).

According to the Athey-Mitchnick model, the fair market value of XRP, if unaffected by legal uncertainties, could be around $4,813. This is significantly higher than the current trading price.

XRP Applications and Future Growth Potential

The calculations in the model are based on two major applications of XRP: as a means of cross-border payments and as a store of value. The model predicts that by 2030, approximately 10% of all global transactions could go through the XRP Ledger (XRPL). It is also expected that 10% of global assets could be stored in XRP.

This would result in a daily transaction volume of $700 billion and demand for XRP storage of $53 trillion by 2030. This increase in adoption and the decrease in the available supply of XRP for transactions (as much of it is held as a store of value) could cause the coin’s price to rise exponentially.

So XRP is at a crossroads. Although it has not lived up to expectations in recent years, it can still play a significant role in the global financial market in the future.

ChatGPT compares Cardano (ADA) and XRP

Instead of an economic model, the artificial intelligence (AI) model ChatGPT was recently used to compare Cardano (ADA) and XRP. According to the AI ​​chatbot, XRP has the better short-term prospects. ChatGPT predicts a possible price increase for XRP within 3 to 12 months, depending on favorable market conditions and regulations.

Cardano is expected to have a harder time recovering. The AI ​​expects growth within 6 to 18 months, but only if technological breakthroughs are achieved.

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