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| XRP |
XRP Ledger (XRPL) is accelerating its entry into the Decentralized Finance (DeFi) market by strengthening its connection with the Ethereum (ETH) ecosystem.
XRPL Launches Ethereum-Compatible Sidechain Testnet
Peersyst, a blockchain infrastructure company, launched a public testnet of an Ethereum-compatible sidechain dedicated to XRPL. This testnet marks the beginning of the full-scale introduction of Ethereum Virtual Machine (EVM) functionality into XRPL. Peersyst collaborated with Ripple's development division, RippleX, interchain platform Axelar Network, and blockchain technology company Common Prefix.
Seamless Asset Movement and Developer Tools
The testnet supports integration with Ethereum wallets like MetaMask and facilitates asset movement through a cross-chain bridge based on Squidrouter. Developers can build decentralized applications (dApps) in the XRPL environment, known for its high speed and low fees. To ensure a smooth testing experience, Peersyst offers its own faucet and a Discord-based community faucet. They also released technical documents and other development resources.
Strategic Move for XRPL Expansion
Ripple's Chief Technology Officer (CTO), David Schwartz, highlighted, "This project is central to XRPL's smart contract expansion strategy. It can attract developers familiar with Ethereum." Peersyst plans to gradually onboard new validators and partners to the testnet, focusing on building a robust ecosystem before the mainnet launch.
This sidechain launch is a strategic move for XRPL to expand into the Ethereum DeFi market. It is expected to attract Ethereum-based developers and capital. Meanwhile, as of March, Ethereum regained its top position in the Decentralized Exchange (DEX) market, surpassing Solana. The trading volume of Ethereum-based DEXs reached $64.6 billion, 22% higher than Solana's $52.6 billion. This is attributed to the cooling down of the meme coin craze on Solana and the increased demand for liquid restaking and derivative platforms on Ethereum.