Ripple is set to introduce Ethereum-compatible smart contracts to the XRP Ledger through a new sidechain. As reported by Coindesk, this sidechain will allow for more than just basic transactions, enabling complex applications like decentralized exchanges and token issuance. The development will also leverage the Axelar network for cross-chain token transfers, with Wrapped XRP serving as the primary token on the sidechain.
This upgrade will bring Ethereum Virtual Machine (EVM) compatibility to the XRP community, allowing developers to use familiar tools and programming languages. This move is expected to increase the XRP Ledger's appeal to a global developer community, expanding its use beyond financial transactions to more advanced blockchain applications.
The XRP Ledger, an open-source blockchain network that processes financial transactions using XRP tokens, first began testing Ethereum-compatible smart contracts in 2022. The new XRPL EVM sidechain will facilitate interoperability between XRP Ledger and other blockchains, with Wrapped XRP acting as the native asset and gas token on the sidechain, providing broader functionality and developer engagement.
What Does It Mean For XRP Price?
XRP has been significantly impacted by its ongoing legal battle with the U.S. Securities and Exchange Commission (SEC), which filed a lawsuit against Ripple Labs in December 2020. Like other cryptocurrencies, XRP is also influenced by overall market sentiment. However, the expected Federal Reserve rate cuts in late September, could create a positive atmosphere for cryptocurrencies like XRP.
At the time of writing XRP is trading at $0.57 and is up by more than two percent. As for Bitcoin, the price is struggling to establish a strong support at the $60k levels and is retesting the $58,500-$59,500 levels.