Research firm Satis Group has released a new report making bold price predictions about the current leading cryptocurrencies on the market. It is attempting to create accurate valuations based on real-world data.
Individual Crypto Asset Valuations
As an emerging, disruptive technology that’s value isn’t yet fully understood or demonstrated, it’s increasingly difficult to give each individual crypto asset a valuation. This creates wild price volatility led by speculators working through natural price discovery.
The report, penned by researchers Sherwin Dowlat and Michael Hodapp, is a deep dive into cryptocurrency market valuations. The duo used a combination of peer-based metrics, quantity theory, discounted cash flow models, and economic forecasting to come up with their valuations.
Satis Group’s research suggests that Bitcoin (BTC), the original cryptocurrency created by Satoshi Nakamoto that started it all, will unsurprisingly continue to reign supreme. They project that it will be priced at $96,000 by the year 2023, and could reach nearly $144,000 before the end of the next decade (sorry, McAfee).
The next highest value cryptocurrency is Monero (XMR), which Satis predict could reach over $18,000 within five years. By 2028, XMR is estimated to be worth as much as $39,000 according to the report. Satis suggest the “largest upside” in the “entire crypto asset market” is in the privacy sector. The firm believes that the network effect, similar to what’s happened with Bitcoin since its inception, would be repeated with the dominant privacy coins.
Zcash (ZEC) and Dash (DASH) are right behind Monero with five-year valuations of roughly $4,400 and $1,900 respectively. In 10 years, Zcash could be valued over $9,000, while Dash would come in just under $3,000.
Litecoin (LTC) is predicted to never again reach its all-time high price of $375, with its 10-year outlook performing at just $225.
Ethereum (ETH), the number two cryptocurrency by market cap, has struggled throughout 2018 after reaching an all-time high of $1,432. Interestingly, like Litecoin, the report suggest that it won’t ever reach that high a valuation again. Statis does believe that Ethereum will rise from here, peaking in 2019 at $882, then dropping roughly $100 per three, five, and 10 years out.
Other entries from the current cryptocurrency market top 10 will suffer far worse fates than Litecoin and Ethereum. These will not only decline in value and never reach their previous all-time highs, but will see their prices drop significantly lower than their current bear market prices.
Ripple (XRP) for example, will end up valued at $0.004 in 10 years, according to the data. Stellar (XLM), which shares the same founder as Ripple, Jed McCaleb, will see consistent prices between $0.01 and $0.02 over the next 10 years. Cardano (ADA) shares a very similar fate, dropping to $0.0001 10 years out.
That leaves just EOS (EOS) and Bitcoin’s hard fork, Bitcoin Cash (BCH). EOS oddly drops off to an estimated $0.05 a year from now, only to reach lower than current prices of $4.50 and $4.80 in five and 10 years. Unfortunately for frontman Roger Ver, Bitcoin Cash will fail to see prices over $1,000 again, and won’t come close to its previous all-time high of $4,330. Satis suggests Bitcoin Cash will decline to as low as $268 in 2023, and only $180 in 2028.