XRP severely undervalued? Analyst: If Amazon adopts Ripple for daily payments, the price will rise explosively.

Ripple (XRP) reached a historic high last week, driven by the passage of the U.S. Crypto Assets regulatory bill. Analyst The Crypto Basic believes that if Amazon starts using XRP for payments, the Token price could achieve double-digit pump.

What would happen if Amazon started using XRP?

Despite the strong recent performance of XRP, many in the community still believe that its value is severely undervalued. What are the main reasons? The actual potential of XRP—especially in the payments space—has yet to be fully realized.

In such discussions, Amazon is a company that is often mentioned. For years, supporters of XRP have speculated about a possible connection between Ripple and Amazon. Although there is currently no official news, this idea has lingered in people's minds.

Why? Because as early as 2020, RippleNet was listed as a partner of Amazon Web Services (AWS). This did not lead to XRP supporting payments for Amazon, but it did plant a seed in the hearts of many XRP holders.

Now, The Crypto Basic has taken it a step further by establishing three models showing how high the price of XRP would pump if Amazon actually adopted XRP on a large scale.

Model 1: XRP Becomes Amazon's Default Currency

The first model envisions that XRP will be widely used on Amazon—from purchasing products and gift cards to paying for Prime subscription fees.

What is the estimated total transaction volume of Amazon? Approximately 700 billion dollars per year. If XRP accounts for 30% of that, it will process 210 billion dollars each year. Assuming the velocity of XRP is 2.5 (the turnover frequency of XRP), the amount of support needed is approximately 84 billion dollars.

If a moderate multiplier is applied to the adoption rate and network value, we will see a significant surge in the market capitalization of XRP—but this model does not include the final price. It merely lays the groundwork.

Model 2: XRP as Amazon's Global Payment Pipeline

In this version, XRP not only supports payments for Amazon itself but also supports third-party merchants and Amazon Pay.

The details are as follows:

  1. The internal payment amount of Amazon reached 150 billion USD.

2, 500 billion USD comes from external merchant payments

  1. XRP Total Trading Volume: $650 billion

If the circulation speed of XRP is 2, a base of 325 billion dollars is needed to support this growth. However, if a 5x speculative multiplier is applied, its total market value will leap to 1.625 trillion dollars.

With 60 billion XRP tokens in circulation, the price of each XRP will reach around $27.

Model 3: XRP Supports Global Infrastructure

In the third (and most ambitious) model, XRP will become the pillar of the following:

  1. Central Bank Digital Currency (CBDC) Bridge

  2. AWS micropayments

  3. Smart Device Trading

  4. Prime Member Benefits

This scenario handles a global activity of 1 trillion dollars, of which 30% requires XRP, approximately 300 billion dollars. Applying an 8x multiplier for global adoption and growth, the market value will reach 2.4 trillion dollars.

Then, The Crypto Basic adds the values of Model One and Model Two (approximately $660 billion) to this $2.4 trillion valuation, bringing the potential total market cap of XRP to $3.06 trillion.

Dividing it by 60 billion XRP, you will get a speculative XRP price of approximately $51.

So, can XRP really reach 51 dollars?

To be honest, this is just highly speculative. These numbers are based on multiple layers of assumptions, from adoption rates to market cap multiples.

However, the reason this scenario is interesting (and practical) is that it revolves around a discussion of practicality. This suggests that if XRP really becomes a preferred payment solution—not just for Amazon but globally—then a two-digit price would not be surprising.

However, the current trading price of XRP is still hovering in the single-digit low range. In the world of Crypto Assets, big dreams are always accompanied by big risks.

But one thing is very clear: if Amazon really integrates XRP (even if it's only partially), the market will find it hard to ignore.

XRP-0.22%
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