Key Takeaways
- Ethereum Virtual Machine (EVM) Comes to XRP: XRP Ledger’s new sidechain will support Ethereum smart contracts, enabling decentralized finance (DeFi) and decentralized applications (dApps) on XRPL.
- 87 New Projects Onboard: Testnet activity shows strong developer interest, with 87 new entities joining the XRP ecosystem.
- wXRP as Gas: Wrapped XRP (wXRP) will power transactions, creating new utility for the token beyond payments.
- Institutional Moves: Ondo Finance brings $30M in tokenized treasuries to XRPL, while VivoPower commits $100M XRP to yield strategies.
XRPL’s Big Ethereum Play
The XRP Ledger (XRPL) is moving into the Ethereum space, without leaving its own. Ripple CTO David Schwartz announced an Ethereum Virtual Machine (EVM)-compatible sidechain at the Apex 2025 conference in Singapore, which will be live in Q2, and it’s going to be one of XRPL’s biggest upgrades ever.
Peersyst Technology, the sidechain builders, posted on its X account:
Think of it like adding a Swiss Army knife to a scalpel: XRPL keeps its lightning-fast payments backbone while gaining Ethereum’s smart contract versatility.
Big Implications for XRP
1. DeFi and dApps, Finally
Ripple’s XRPL has long lagged in decentralized finance. Now, developers can port Ethereum apps using Solidity, MetaMask, and Truffle, tools they already know at this stage. Early testnet adopters include Strobe Finance and Vertex Protocol.
2. wXRP Demand Boost
The sidechain uses wrapped XRP (wXRP) for gas fees. More activity = more XRP locked, potentially tightening supply.
3. Institutional Adoption
- Ondo Finance launched a $30M tokenized treasury product on XRPL.
- VivoPower is deploying $100M XRP into yield-generating strategies via Flare Network.
How the Sidechain Works
- Bridge: Axelar Network connects XRPL to 69+ blockchains.
- Consensus: Proof-of-Authority (PoA) for speed (1,000+ TPS) and low fees (<$0.01).
- Security: Audited by Informal Systems, with critical fixes already implemented.
Controversies and Challenges
- Centralization Trade-off: PoA relies on approved validators, unlike XRPL’s decentralized mainnet.
- EVM Saturation: With Polygon, Arbitrum, and Solana already dominating DeFi, can XRPL really carve a niche?
What’s Next?
Mainnet launch is weeks away. If successful, XRPL could finally compete in DeFi, tokenization, and institutional crypto areas where it’s been overshadowed.
Final Thought: Will Ethereum devs flock to XRPL, or is this too little, too late? The coin is up in the air; all that remains is to wait for the results. As the ecosystem grows and some projects evolve, some others just copy and paste use cases with no real innovation. But it seems that XRP is just igniting its engines.
For more on XRP, read: Ripple Price Prediction: Expert Sees XRP’s 1.5 Trillion Market Cap
