- Ripple Labs plans to introduce smart contracts on the XRP Ledger (XRPL) by 2025, aiming to enhance its scalability and support for Web3 protocols.
- This move, following the resolution of the SEC lawsuit, is expected to boost XRP’s market performance and position XRPL as a strong competitor in the blockchain space.
With the recent conclusion of the SEC lawsuit against Ripple Labs, the blockchain payment company is seizing the opportunity to advance the XRP Ledger (XRPL) network. Ripple’s announcement of its plans to introduce smart contracts on XRPL by 2025 marks a significant shift in the blockchain landscape, positioning the network to compete with other leading layer-one chains like Ethereum (ETH), Solana (SOL), and Toncoin (TON).
Advancing XRPL for Web3 Integration
Ripple Labs, a major player in the XRP market, is focusing on enhancing the XRPL network to support scalable and secure smart contracts. This development aims to cater to the rapidly growing decentralized finance (DeFi) sector, which boasts a market cap exceeding $69 billion and a daily trading volume of over $3.1 billion. The XRPL’s upgrade will introduce advanced programmability, enabling it to support Web3 protocols and thus fostering broader institutional and retail adoption.
The XRPL network, using XRP as its native cryptocurrency, has been a significant force in cross-border payments, particularly backed by institutional investors. Following the legal clarity gained from the Ripple-SEC case, Ripple is now channeling efforts into expanding XRPL’s capabilities. The company has already initiated the launch of the XRPL EVM sidechain, enhancing interoperability with Ethereum’s ecosystem and other chains via wrapped XRP (eXRP).
Future Prospects and Technical Analysis
Ripple’s ambitious plans include the development of US dollar-backed stablecoins to operate on both XRPL and Ethereum blockchains. This dual advancement in programmability is expected to play a crucial role in XRPL’s mainstream adoption and XRP’s market performance.
From a technical perspective, XRP has experienced a prolonged period of consolidation, constrained by legal challenges over the past six years. The cryptocurrency has been moving within a multi-year triangular pattern but is now approaching a critical breakout point. Currently valued at approximately $57 billion with a daily trading volume of around $908 million, XRP’s price has shown signs of potential upward movement.
The resolution of the Ripple vs SEC case and the subsequent developments on XRPL are likely to invigorate XRP’s market performance. As the XRP/BTC pair tests multi-year lows amidst an anticipated altseason, these advancements could provide the catalyst needed for a significant price rebound in the near term.
Ripple Labs’ strategic push to integrate smart contract functionality into XRPL by 2025 is set to transform the network’s role in the Web3 ecosystem and rejuvenate XRP’s market momentum.
