A new report coming from the independent crypto research group Picolo claims XRP is significantly undervalued.
The company says that Ripple’s recent Q3 XRP Markets Report points to “further upside” in XRP’s price, due to a surge in institutional investor volume.
Ripple has reported a 481% increase in quarter-over-quarter institutional direct sales of XRP rising from $16.87 million to $98.06 million.
xRapid is a potential catalyst for XRP price rise
Picolo’s research also points to the commercial release of Ripple’s xRapid which uses XRP for cross-border payments as a potential catalyst for the increase in the price of XRP.
They said that it’s 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: Value of cost savings utilizing XRP on xRapid, not including savings derived from xCurrent and the Value of locked-up liquidity in NOSTRO accounts that could potentially flow into XRP (estimated 1% of total locked-up liquidity)” according to the report.
Picolo’s analysts derived an intrinsic valuation of $1.75 per XRP token. The company also identifies a few risks for XRP investors which include the following:
- Potential confusion between Ripple, the company and its digital asset XRP
- Concerns regarding the nature of XRP, whether it’s centralized or not due to the fact that Ripple owns 60% of the total supply
- Lack of clarity on whether XRP will be classed as a security with several lawsuits pending on the matter
Picolo’s full report is detailed here.
Ripple boosts xRapid adoption
Ripple has been working hard to boost xRapid adoption and now a consumer payment platform is integrating Ripple’s XRP-powered xRapid in order to lower costs and increase the efficiency of cross-border transactions.
The platform called SendFriend is backed by Ripple, Mastercard and MIT Media Lab.
SendFriend will launch later this year, and it’s targeting Philipinnes in order to give expatriates a cost-effective way to send money back home.
