- The XRP Ledger is expanding with an Ethereum-compatible sidechain on testnet, enabling smart contracts and DeFi applications while using XRP as the main currency.
- This development strengthens XRPL’s competitiveness, sparking bullish predictions for XRP’s future despite mixed analyst opinions.
The XRP Ledger (XRPL) is taking a major step forward in blockchain innovation. Peersyst Technology, a blockchain development firm, has launched a testnet version of an Ethereum-compatible sidechain for XRPL. This marks a significant leap for the ecosystem, allowing developers to utilize Ethereum-style smart contracts while still leveraging XRP as the primary currency.
Bridging XRPL and Ethereum for DeFi Growth
Historically, the XRP Ledger has lacked full smart contract functionality, limiting its competitiveness in the decentralized finance (DeFi) sector. However, with the introduction of this sidechain—developed in collaboration with RippleX, Axelar Network, and Common Prefix—the landscape is shifting.
Now, developers can build DeFi applications like lending platforms and decentralized exchanges directly on XRPL. This not only enhances XRPL’s utility but also positions it as a formidable player in the blockchain space.
Also read: Ethereum Price ‘Extremely Undervalued’ as ETH Flips Solana in Key Metric
What’s Next for the Sidechain?
The devnet version of this project first launched in October 2022, followed by an upgraded release in June 2023. Now, with the testnet operational, Peersyst has hinted at upcoming announcements regarding new partners, infrastructure improvements, and validator expansions.
Ripple’s Chief Technology Officer, David Schwartz, has expressed strong support for the initiative. He previously stated, “I hope the XRPL EVM sidechain is extremely successful and competitive as a smart contract platform and will be another XRP ecosystem.”
Could XRP Skyrocket? Analysts Debate
The excitement surrounding XRPL’s expansion has fueled speculation about XRP’s price trajectory. Crypto analyst Steph Is Crypto predicts an astronomical 72,500% surge, suggesting XRP could reach $1,452 by September 2025. However, with XRP currently trading around $2.09, many remain skeptical of such extreme projections.
While some experts foresee XRP climbing to $3–$15 in the near future, others suggest targets of $50–$100 by 2027. Meanwhile, veteran trader Peter Brandt warns of a potential bearish trend, cautioning that a drop below $1.90 could push XRP to $1.07.
With its expanding DeFi capabilities, increasing institutional adoption, and ongoing legal victories, XRP is at a pivotal moment. Whether its price surges dramatically or sees steady growth, one thing is clear: the XRP ecosystem is rapidly evolving, and its future looks promising.
