Ripple’s New Developments in the XRP Ledger
Ripple’s Chief Technology Officer, David Schwartz, believes that the introduction of the Ethereum-compatible sidechain within the XRP Ledger could spark increased innovation in its ecosystem and draw in new developers. In a conversation with Decrypt, Schwartz criticized many Ethereum applications as being subpar but acknowledged that the overall drive for experimentation in that community could positively impact the XRP Ledger. He emphasized that the number of developers currently engaged with XRP Ledger is lower than he would expect, partly due to the lack of programmability at the layer-1 level.
Launch of the XRPL EVM Sidechain
In June, Ripple announced that the XRP Ledger was entering a new phase characterized by multi-chain capabilities with the launch of the XRPL EVM Sidechain. This development allows the creation of applications using smart contracts, similar to those on the Ethereum network, while utilizing XRP as the primary token. Schwartz invited developers proficient in Solidity, Ethereum’s dominant programming language, to contribute to the XRP ecosystem.
Challenges and Growth Potential
Recently, Standard Chartered analyst Geoff Kendrick set a target price of $5.50 for XRP by the year’s end, citing the cryptocurrency’s essential role in facilitating cross-border and cross-currency transactions. However, Kendrick noted that a limited number of developers within the XRP Ledger ecosystem presents a significant challenge for the cryptocurrency’s growth. Currently, only 168 developers are reported to be working within the XRP ecosystem, compared to approximately 8,500 and 4,000 active developers on Ethereum and Solana, respectively, as per a Developer Report.
Acknowledging this disparity, Schwartz commented on the need to attract more developers to the network. He indicated that the new sidechain feature could open doors for applications focused on lending and tokenization, leveraging the liquidity of the XRP Ledger. Although the initial launch of the XRPL EVM Sidechain has not generated significant traction, Ripple is proactively encouraging engagement through grants, community funding, and initiatives aimed at fostering institutional adoption.
Current Usage and Future Prospects
According to data from DefiLlama, as of Wednesday, the EVM sidechain has seen usage of $94,000 in DeFi assets, with Moai Finance being the most utilized application, recording a modest trading volume of $54 over the last 24 hours.
