The XRP Ledger (XRPL) is undergoing a significant transformation aimed at bolstering its decentralized finance (DeFi) capabilities and enhancing interoperability with the broader blockchain ecosystem. RippleX, the development arm supporting the XRPL, has announced two pivotal updates: the mainnet launch of an EVM-compatible sidechain and the release of "rippled" version 2.5.0, which introduces several new features pending validator approval. These developments have sparked immediate positive sentiment in the market, with the XRP price showing notable strength. The XRPUSD pair registered a 2.45% gain, climbing to $2.3273, with trading volume reaching $135,019.50 in the last 24 hours.

XRP Ledger Unveils Major Upgrades to Boost DeFi and Interoperability

The most significant development is the launch of the XRPL EVM sidechain on the mainnet. This move directly addresses a long-standing limitation by enabling developers to deploy Ethereum-based decentralized applications (dApps) and smart contracts within the XRP ecosystem. According to a blog post by Ripple, the sidechain is connected to the main XRPL via the Axelar bridge, an interoperability protocol, ensuring seamless asset transfer and communication. Crucially, XRP will serve as the native gas token for transactions on this new sidechain, creating a direct utility link and potentially increasing demand for the asset as the sidechain's activity grows. This strategic integration is designed to attract a wider pool of developers familiar with Ethereum's Solidity programming language, opening the door for XRPL to tap into the vast DeFi market and leverage its established, low-cost payment infrastructure for more complex financial applications. The market reacted swiftly, with the XRPUSDT pair climbing to a 24-hour high of $2.3372, indicating strong buying pressure following the announcement.

Rippled 2.5.0 Release and New Amendments

Complementing the EVM sidechain is the release of `rippled` version 2.5.0. This update proposes seven new amendments that, if approved by over 80% of trusted validators over a two-week period, will expand the core functionality of the ledger. Among the key proposals is “TokenEscrow,” which facilitates the creation of escrows for IOU and multi-purpose tokens, a critical feature for building sophisticated DeFi products. Another amendment, “Batch,” allows for the atomic execution of grouped transactions, improving efficiency and reducing the potential for failed partial executions. Furthermore, the “PermissionedDEX” amendment offers decentralized exchange operators the ability to control participation, a vital tool for meeting regulatory compliance requirements. This dual focus on both permissionless DeFi innovation and compliance-aware enterprise solutions positions the XRPL to cater to a diverse range of use cases, from retail trading to institutional asset management.

Market Reaction and Cross-Ecosystem Analysis

These upgrades place the XRP Ledger in a more competitive position against other smart contract platforms. The move comes at a time when the industry is focused on scalability and interoperability, as highlighted by the launch of the Bitcoin Layer-2 network Botanix and Ethereum core developer Barnabé Monnot's proposal to halve Ethereum's block time. While other networks are building scaling solutions, XRPL is directly integrating EVM compatibility to leverage an existing developer base. This strategic choice appears to be resonating with traders. The positive price action in XRP is mirrored by gains in other smart contract tokens, with ETHUSD rising 3.16% to $2,633.68. The ETHBTC pair also gained 2.375%, suggesting that capital is flowing into Layer-1 ecosystems with strong development roadmaps. For XRP, the immediate challenge will be to translate these technical upgrades into tangible on-chain activity and dApp deployment.

From a trading perspective, the recent news provides a strong bullish catalyst for XRP. The price has established a new 24-hour high at $2.3353 on the XRPUSD pair, which now acts as an immediate resistance level. A sustained break above this level could signal further upside momentum. On the downside, the 24-hour low of $2.2716 serves as the first line of support. Traders should closely monitor the validator voting process for the new amendments, as their successful passage would further solidify the fundamental improvements to the network. The growth in total value locked (TVL) and transaction volume on the new EVM sidechain will be the ultimate measure of success and a key metric for long-term investors to watch. The combination of enhanced utility, developer incentives, and a clear focus on both DeFi and enterprise adoption provides a compelling narrative for XRP moving forward.