XRP is gaining attention in the cryptocurrency sector, and some analysts believe that the digital asset remains significantly undervalued, particularly in the context of global payment systems.
XRP’s Role in E-Commerce
The global e-commerce payments market, valued at approximately $7 trillion in 2024, is expected to increase to $11.4 trillion by 2029. This growth is driven by factors such as the expansion of mobile purchasing and demand for faster, more efficient payment methods.
While traditional methods like credit and debit cards remain in widespread use, there is a clear shift toward more modern solutions. Digital assets, such as XRP, are identified as strong contenders in this evolving landscape.
In August 2024, Web3 Enabler, a Salesforce Web3 partner, emphasized XRP's potential in cross-border and domestic e-commerce transactions, citing rapid settlement times and minimal transaction fees as advantages.
Projected XRP Valuation Based on Utility Model
To estimate the price impact if XRP were to handle a portion of global e-commerce activity, we explored a scenario where XRP manages 20% of the projected transaction volume for 2029, equivalent to approximately $2.28 trillion annually.
For valuation, two analytical approaches were considered. The first models XRP based on pure utility as a core transaction layer within the payment ecosystem. Assuming a circulating supply of 60 billion tokens, the model indicates a required market cap of $570 billion, which places XRP at $9.50.
Speculative Value Projection Based on Market Sentiment
The second model considers the impact of market speculation, where investor enthusiasm and forward-looking expectations drive valuation before actual utility is fully realized. By applying a 15x speculative multiplier to the $570 billion utility-based market cap, this approach yields a projected market cap of $8.55 trillion. Dividing this by the same 60 billion circulating tokens gives a theoretical price of $142.50 per token.
Although these models are hypothetical and depend on various assumptions, they highlight the substantial upside that could occur if XRP secures a meaningful share of the e-commerce market.
Whether driven by practical usage or speculative investments, XRP's future may reflect a broader shift in how global payments are processed in the digital age.
