Achilles95 Posted January 15, 2018 Share Posted January 15, 2018 (edited) What do you guys think of this simple equation for XRP valuation: $ Exchange Rate = Annual $ Transaction Volume/ (Velocity of XRP*Money Supply) So for example, here is a rough back of the envelope calculation. Coinmarketcap.com currently shows that the current 24h transaction volume of xrp is 1.7 billion. Multiplying this by 365 to get annual transaction volume yields $620.5 billion annual transaction volume. Using the above equation, we can back out the velocity of XRP since we know the money supply and the exchange rate and the annual transaction volume. Hence, Velocity = $620.5 billion /($1.75 * 39 billion) = 9.09 Now assuming velocity of XRP is constant over time, we can begin to make forward predictions. Here is a sample: Edited January 16, 2018 by Achilles95 RecentChange 1 Link to comment Share on other sites More sharing options...
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!Register a new account
Already have an account? Sign in here.Sign In Now