“It is important to note that XRP’s value is derived when clients use XRP as a bridge currency on Ripple’s xRapid platform, and not directly from its other products. We derive its fundamental value from two aspects.”The two aspects in question are the value of cost saving, utilising XRP on xRapid and not including savings derived from xCurrent. The second aspect is the value of locked up liquidity in NOSTRO accounts which could potentially flow into XRP.
“Our analysts derived an intrinsic valuation of $1.75 per XRP token. The estimates used are conservative as it does not include tokens burnt, the growth of Ripple’s market share, value attributed for error reduction and market share of other non-bank financial institutions.”The company also looks into several risk factors for investors of XRP which includes the potential confusion regarding the difference between XRP and Ripple, concerns about if XRP is a centralised currency due to the fact Ripple owns 60% of the overall supply of the token and the lack of clarity on whether the token will be classified as a security, with several lawsuits being in the pipeline on the matter. At the current time of writing, XRP is in the green after seeing a 17% over the course of the weekend leaving the price to be $0.54 and an overall market cap of $21,828,022,409 exactly. As per usual, we are not financial advisors so make your investments at your own risk. What are your thoughts? Could Let us know what you think down below in the comments!