XRP News Today: XRP Could Surge 1,836% to $44.13 if it Handles USDT's Peak Volume

The valuation of XRP remains a contentious topic within the cryptocurrency community. Despite its significant price fluctuations and decline from its peak of $3.84 in 2018, many investors and analysts believe that XRP is undervalued, particularly given its intended role as a bridge currency for cross-border payments. While some are skeptical about its long-term prospects, others argue that XRP could experience substantial growth if it begins to facilitate large-scale financial transactions, especially within institutional settings. One approach to evaluating this potential is through a valuation model that focuses on real-world utility rather than market speculation.

A research model developed by Robert Mitchnick and Susan Athey provides a methodology for valuing digital assets based on their role in actual economic activity. This model assesses the relationship between transaction volume, token supply, and usage frequency. Using a publicly available calculator based on this framework, we explored a hypothetical scenario where XRP handles the same daily transaction volume as Tether (USDT) did at its peak this year.

Tether (USDT), the most actively traded stablecoin, reached its highest daily volume on February 3, 2025, at $292 billion. This volume is driven by its extensive use across crypto exchanges and trading platforms as a base pair against major assets like Bitcoin and Ethereum. In contrast, XRP’s highest daily transaction volume in recent years was $51.7 billion, achieved in December 2023. This comparison sets a high benchmark but provides a meaningful reference point for exploring XRP’s potential growth under optimal adoption conditions.

To simulate XRP handling a $292 billion daily volume, several parameters were applied. We assumed an average holding time of 10 days for each XRP token, reflecting active use in institutional settlements. We also estimated the value of XRP held as a store of value at $180 billion. The projection was made over three years to account for growth in adoption, regulatory clarity, and Ripple’s efforts to expand utility. We projected a circulating supply of 66.2 billion tokens by that time, considering the gradual release of XRP from escrow, approximately 200 million per month. A 2% annual discount rate was applied to bring the projected price back to present-day terms, representing a modest expected rate of return over the next three years.

With these parameters in place, the model generated a present-value estimate of $44.13 per XRP. This represents a significant increase from its current market value of approximately $2.28, a potential gain of nearly 1,836%. This outcome aligns with past forecasts from analysts who have separately projected a $44 price point under favorable market conditions. However, this analysis is not a price prediction but rather an illustration of what XRP could be worth if it supports transaction volumes comparable to leading stablecoins like USDT, assuming the appropriate infrastructure and institutional participation are in place.