XRP Ledger: The Crypto Underdog

So, Ripple Labs has finally unveiled its roadmap for building an institutional decentralized finance (DeFi) ecosystem on the XRP Ledger blockchain network. Because, you know, the world was just missing that. 🙄

According to a Feb. 25 blog post (yeah, I know, I’m a little behind), the blockchain developer is prioritizing applications that position XRP Ledger as “a safe, secure, and scalable layer 1 for financial institutions looking to use blockchain in a regulated environment.” Wow, that’s a mouthful. 🤯

They’re talking about a permissioned decentralized exchange (DEX), a credit-based DeFi lending protocol, and a new token standard, multi-purpose token (MPT). Because, you know, the world needs more tokens. 🤑

Each of these will rely on XRP Ledger’s “decentralized identifiers” to integrate compliance checks into the application’s smart contracts. Yeah, because compliance is the most exciting thing in crypto. 😴

XRP Ledger’s roadmap builds on top of existing infrastructure, including price oracles and an automated market maker (AMM). Because, you know, the world needs more oracles. 🔮

Related: XRP’s DEX clocking $17M daily volume — CEO

Lagging user growth

So, the price of XRP Ledger’s native token, XRP (XRP), has increased by more than 300% since Nov. 5, when crypto-friendly Donald Trump won the US presidential race. Yeah, because that’s not a bubble waiting to happen. 🚀

As of Feb. 26, XRP’s market capitalization stands at approximately $128 billion, according to CoinMarketCap. That’s a lot of money, but let’s be real, it’s still not as cool as Bitcoin. 😎

However, activity on XRP Ledger still lags behind rival chains. It has a total value locked (TVL) of roughly $80 million, compared to Ethereum’s more than $50 billion, according to data from DefiLlama. Yeah, that’s a bit of a problem. 🤦‍♂️

Unlike blockchain networks such as Ethereum, XRP Ledger has not historically supported third-party smart contract deployments. Because, you know, that’s not a limitation at all. 🙅‍♂️

Products such as XRP Ledger’s AMM are deployed by Ripple’s core developer community. Yeah, because that’s not a centralized system at all. 🤣

The DEX has handled upward of $1 billion in cryptocurrency swaps since launching in 2024, Ripple CEO Brad Garlinghouse said in January. That’s a lot of swaps, but let’s be real, it’s still not as cool as a real exchange. 📊

Launched in 2012, XRP Ledger is among the oldest blockchain networks. Yeah, because age is just a number, right? 🎂

Reasons for optimism

Ripple hopes that leaning into institutional DeFi, including real-world assets (RWAs), will supercharge the network’s growth, according to the blog post. Yeah, because that’s not a pipe dream at all. 🌟

Tokenized RWAs represent a $30-trillion market opportunity globally, Colin Butler, Polygon’s global head of institutional capital, told CryptoMoon in an interview. That’s a lot of money, but let’s be real, it’s still not as cool as a real asset. 🤑

Trump, who has promised to turn the US into the “world’s crypto capital,” plans to tap industry-friendly leaders to head key financial regulators, including the US Securities and Exchange Commission. Yeah, because that’s not a recipe for disaster at all. 🤦‍

2025-02-26 22:03

Related: XRP’s DEX clocking $17M daily volume — CEO

Lagging user growth

Reasons for optimism

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