Here’s Projected XRP Price if It Matches Tether (USDT) Peak Volume

The potential valuation of XRP continues to spark debate across the cryptocurrency space. Despite experiencing significant price swings and a decline from its all-time high of $3.84 in 2018, many investors and analysts still believe XRP remains undervalued, particularly in light of its intended use as a bridge currency for cross-border payments.

While some observers remain skeptical about its long-term prospects, others maintain that XRP could see considerable growth if it begins to facilitate large-scale financial activity, particularly within institutional frameworks. One way to assess this possibility is by using a valuation model based on real-world utility rather than speculation.

Measuring XRP’s Value Through Utility

A widely referenced methodology for valuing digital assets comes from a research model developed by Robert Mitchnick and Susan Athey. Unlike approaches driven by market sentiment, this model estimates fair value based on a token’s role in actual economic activity. It evaluates the relationship between transaction volume, token supply, and how frequently each token is used.

Using a publicly available calculator built on this framework, we assessed XRP’s value under a hypothetical but relevant scenario: what if XRP handled the same level of daily transaction volume as Tether (USDT) did at its highest point this year?

The Benchmark: USDT’s Peak Volume

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Tether (USDT), the most actively traded stablecoin, recorded its peak daily volume on February 3, 2025, reaching $292 billion. This volume is driven by its widespread use across crypto exchanges and trading platforms as a base pair against top assets like Bitcoin and Ethereum.

By contrast, XRP’s highest daily transaction volume in recent years was $51.7 billion, which it achieved in December 2023. The comparison sets a high benchmark, but it provides a meaningful reference point for exploring XRP’s potential growth under optimal adoption conditions.

Parameters Used in the Valuation

To simulate XRP handling a $292 billion daily volume, several parameters were applied. First, we assumed that the average holding time for each XRP token is 10 days, reflecting active use in institutional settlements. We also estimated the value of XRP held as a store of value at $180 billion.

Next, the projection was made over three years, allowing sufficient time for growth in adoption, regulatory clarity, and Ripple’s ongoing efforts to expand utility. To factor in supply changes, we projected a circulating supply of 66.2 billion tokens by that time, accounting for the gradual release of XRP from escrow, approximately 200 million per month.

Lastly, to bring the projected price back to present-day terms, a 2% annual discount rate was applied, representing a modest expected rate of return over the next three years.

Projected Price Outcome

With all these parameters in place, the model generated a present-value estimate of $44.13 per XRP. This would represent a substantial increase from its current market value of approximately $2.28, a potential gain of nearly 1,836%.

However, this analysis does not serve as a price prediction. Instead, it illustrates 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.

Disclaimer*: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.*