Pipeline Flow Valuation Suggests XRP Fair Value Could Be as High as $3,541

The Pipeline Flow Model, a market valuation model, estimates the fair market value of XRP could stand at a four-digit figure.

Several industry leaders and XRP enthusiasts have argued that XRP trades at a price far below its intrinsic value. These comments often suggest the altcoin is facing a price suppression campaign that has kept it largely undervalued over the years.

XRP Price Suppression Claims

Recall that XRP was one of the top performers of the 2017/2018 bull run, spiking 60,000% within a year to hit $3.31. However, since the collapse from this peak, the banker’s coin, as some call it, has continued to underperform.

Some believed this price suppression came from Ripple’s periodic XRP sales. However, the firm and some of its executives have swiftly debunked these claims. Others insist that the suppression has come from the SEC’s four-year legal battle with Ripple. 

Amid these speculations, most market watchers project an imminent breakout for XRP to new heights. Meanwhile, equity firm Valhil Capital previously presented a report with multiple valuation models. This report was an attempt to assess XRP’s fair market value, which they believe is far higher than its current market value.

The Pipeline Flow Model

The Pipeline Flow methodology is one such model. Developed by Dr. Deon Bakkes, an evolutionary biologist, the model approaches XRP’s valuation uniquely by leveraging concepts from ecological systems and dynamic adaptation. 

The model views XRP’s role in the financial ecosystem as a dynamic system where value could represent water flowing through pipes. In this analogy, the “pipes” represent XRP’s payment rails, and the diameter of each pipe represents the price of XRP. 

The circulating supply acts as the total number of pipes, determining the capacity for transactions. As transaction volumes rise, the model suggests that XRP’s price will expand, reflecting increased demand and tighter supply conditions.

The model assumes that a “big bang” event could drive a sharp increase in the adoption of XRP for foreign exchange (FX) transactions. It foresees an initial price spike during this adoption phase, followed by potential sell-offs. The initial adoption push could influence price stability, with price volatility as a natural outcome.

XRP Fair Market Value

The Pipeline Flow Model also factors in supply and demand interactions, considering the influences of store of value and transaction volume. 

With an integration of these forces, the model simulates different hypothetical market scenarios and discusses how XRP might respond under these conditions. It suggests that XRP’s fair value could stabilize at $3,541, assuming global transaction volumes reach a peak level. 

For context, XRP currently trades for $0.5126, down 6.35% over the past 24 hours. At its current market price, XRP is 690,692% away from the fair value of $3,541. Notably, this figure is not a price projection but a hypothetical value for XRP without the alleged price suppression.