- Ripple introduced the EVM Sidechain to strengthen XRP Ledger’s ecosystem, attracting Ethereum Developers and expanding decentralized cross-chain applications.
- Ripple is focusing its innovation on smart contracts, and Ripple USD stablecoin. The market cap decline highlights XRPL’s evolving landscape.
Ripple’s XRP Ledger ecosystem (XRPL), which includes the XRP Ledger, has recently experienced a dramatic fall, its market capital falling below $80,000,000, its lowest level since January 2022. This fall in market cap may be alarming to investors but it’s important to look at the bigger picture of Ripple.
XRP Ledger’s ecosystem market cap hits record low: what it means
The Market Cap of #XRP Ledger ecosystem dropped recently to $80 millions, the lowest level since January 2022. @xpmarket). While this might raise concerns, it’s important to… pic.twitter.com/ruTsJavk3a
— Dr. Artur Kirjakulov (@Kirjakulov) September 8, 2024
Ripple enhances XRPL by integrating smart contracts and the EVM sidechain
Ripple actively developed the XRPL, adding smart contracts as well as integrating an Ethereum Virtual Machine sidechain.
The enhancements will increase the functionality of XRPL, It will be able to support Decentralized Finance (DeFi), and other Blockchain-based applications.
Ripple is one of the most anticipated developments. work Integrate smart contracts within the XRPL Ecosystem. Ripple’s leadership has expressed conflicting opinions about this initiative.
As previously discussed reportedDavid Schwartz CTO and Wietse Win, director of XRPL Labs, have publicly expressed their opposing opinions on Layer 1 Smart Contracts.
Wind’s position is more conservative. Wind believes that Layer 1 Smart Contracts could be a distraction from the primary focus of XRPL, which is payments and tokenization. Schwartz, however, supports this integration. Ripple is grappling with the larger issue of how to balance innovation and network stability.
Despite the internal discussions, Ripple is committed to improving XRPL, especially with the addition of the EVM Sidechain. The EVM sidechain will provide compatibility for XRPL with Ethereum. This allows developers to build decentralized applications (dApps), which use both networks.
EVM integration is viewed by many as a step that will attract Ethereum projects and developers into the XRPL Ecosystem and increase its value.
Ripple’s aim to make XRPL a top platform for payment and tokenization is reflected in this cross-chain functionality, especially when it comes to cross-border bank transactions.
Global Market Trends Influence XRPL Declination and Drives Strategic Shifts
The decline in XRPL’s market cap isn’t entirely technical. It is not just XRPL that has experienced a decrease, but the entire crypto market. Numerous blockchains such as Ethereum, Solana or Tron have also been affected.
This wide-spread fall suggests that XRPL’s declining market cap is part of a larger trend, impacted both by the economic climate and changes in investor opinions. Some may view this as a weakness while others see it as an opportunity to refocus XRPL on its core capabilities.
Ripple is refining its platform and launching the RLUSD The stablecoin will play an important role in the recovery process of the ecosystem. RLUSD is pegged at 1:1 to the US Dollar and is meant to boost liquidity. It will also open new uses cases within XRPL.
Inclusion of the stablecoin into the XRPL eco-system may attract more developers and users. This could lead to the growth of payment related dApps, and decentralized financial applications.
Furthermore, Ripple’s As more and more industries begin to explore asset management using blockchain technology, the focus will remain on real-world tokenization. This has a tremendous growth potential.
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