Ripple unveils EVM sidechain enabling Ethereum apps in XRP ecosystem

Ripple recently introduced the XRPL EVM Sidechain mainnet, unveiling a platform that allows Ethereum applications to operate on the XRP Ledger with seamless cross-chain connectivity through Axelar, an interoperability protocol that links more than 80 blockchains. This upgrade signifies a significant milestone in Ripple’s efforts to expand the functionalities of the XRP ecosystem, as developers can now leverage familiar tools like Solidity and MetaMask to create or migrate applications to the XRP Ledger. Moreover, these applications can tap into XRPL’s on-chain liquidity and utilize XRP as the native gas token.

According to Ripple, the newly launched sidechain boasts the capacity to handle up to 1,000 transactions per second, substantially surpassing the transaction throughput of Ethereum while maintaining lower fees. Ripple’s Chief Technology Officer, David Schwartz, expressed his excitement about the launch, emphasizing that it signals the beginning of a broader initiative to integrate XRP with additional networks without altering the underlying principles that underpin the XRPL’s reliability.

Schwartz further elaborated on the advantages of the XRPL EVM Sidechain, highlighting its role in providing developers with a flexible environment for deploying EVM-based applications while ensuring seamless connectivity with the XRP Ledger’s efficiency. The sidechain has garnered support from various blockchain projects, with partners like Axelar facilitating cross-chain transfers, Squid serving as the main interface for asset transfers between XRPL and the sidechain, and other collaborators like Band Protocol and Grove offering essential price data and public infrastructure support.

As Ripple continues to expand its ecosystem, the popularity of its RLUSD stablecoin has been on the rise. Market data from CoinGecko reveals that RLUSD’s market capitalization has surged from $308 million in early June to $455 million as of the latest recording, signaling a significant growth spurt of over 50% in just a month. This surge in market capitalization can be attributed to RLUSD’s inclusion on Aave, the largest lending protocol on Ethereum, as reported by The Defiant in late April. Notably, over 85% of RLUSD is now issued on Ethereum, compared to approximately 14.5% on the XRP Ledger, a gap that Ripple aims to narrow through the launch of the XRPL EVM Sidechain.

Despite the steady growth of RLUSD, data from DefiLlama indicates a slight decline in XRPL’s total value locked, dropping from $69.7 million on May 14 to $56 million by the end of June. This metric suggests a shift in user engagement or asset allocations within the XRP ecosystem, prompting Ripple to introduce innovative solutions like the XRPL EVM Sidechain to enhance user experience and foster interoperability across different blockchain networks.