Wider institutional adoption and holding behavior may affect the supply of XRP.

A recent valuation model developed by Valhil Capital has sparked a new discussion in the cryptocurrency sector, after predicting that the price of XRP will reach $9,000 by the end of the decade. The model is based on the long-term potential utility of XRP and the increasing demand for it as a global settlement asset.

According to the report, the model is based on the Athey & Mitchnick framework, which focuses less on the transaction volume of XRP and more on its value storage properties.
As the adoption of XRP by more users and institutions for cross-border settlements increases, the available supply will decrease, which could lead to a significant increase in price.

Widespread adoption is expected to take five years, and analysis will be conducted by 2030. The estimated daily transaction volume is around 700 billion dollars, and the circulating supply is 56.5 billion XRP.

The future value was estimated using a discount rate of 10 percent, and the base scenario was estimated at approximately 4,813 per token.

Read also: Here’s why XRP Spot ETF funds are just one step away from approval by the U.S. Securities and Exchange Commission.
According to the model, if XRP is used in only 10% of global financial transactions, this price level would be justified. However, more stringent conditions were also considered, and when the total demand reaches a quadrillion dollars, the price of XRP could reach 9000 dollars.

Wider institutional adoption and holding behavior may impact the supply of XRP.
The Hill's report highlights a self-reinforcing loop that may arise from the increasing use of XRP. As more institutions adopt XRP for settlement, users may be inclined to hold onto it instead of spending it, exacerbating its trading scarcity.

This behavior could drive prices up, especially as new sectors, including real estate and financial derivatives, begin to integrate XRP into their operations. These sectors were not part of the fundamental model, and there may be room for growth as the adoption expands.
The report also highlights a number of challenges, including global regulatory changes and shifts in technological infrastructure. These factors may impact the rate and volume of XRP adoption in the financial system.

Valhill Capital's forecasts indicate promising prospects for XRP, linking its value growth to increased global usage. While the $9,000 mark is considered the ceiling, this model reflects a growing belief in XRP's role as a long-term financial instrument.