Ripple Labs’ XRP Ledger (XRPL) has set a key DeFi milestone as its Total Value Locked (TVL) rebounded from previous lows. Recent DefiLlama data shows that XRPL’s TVL now stands at $14.97 million.
Though this figure pales compared to its rivals, it shows success considering its historical trends.
XRPL DeFi TVL Grows from Previous Lows
In August, XRPL’s TVL plunged to as low as $269,887, negatively erasing the asset’s DeFi outlook. At the time, market experts expressed concerns about the implications of the declining TVL value for XRP.
The latest figure, however, signals that investors are paying more attention to the XRP ecosystem. To provide context, TVL refers to the total value of an asset locked or staked in a protocol’s DeFi ecosystem. TVL is an important metric in evaluating a project’s quality and popularity.
Similar to a traditional bank with high deposit levels, a higher TVL attests to the reliability and safety of a blockchain platform. Despite the recent surge, XRPL’s TVL is still behind other chains like Ethereum, Tron, and Solana.
At press time, Ethereum, Tron, and Solana’s TVLs were $44.97 billion, $7.93 billion, and $4.75 billion, respectively.
Recent Updates on the XRP Ledger
Meanwhile, the growth in XRPL’s TVL comes amid ongoing developments in the protocol. For instance, XRP Ledger is about to get its dedicated stablecoin through Ripple Labs. The blockchain payment company is finally launching RLUSD on the XRP Ledger.
Things are moving fast, as Ripple recently performed test minting for the proposed stablecoin on XRPL and the Ethereum blockchain. The minting, which took place in a beta test on the XRPL, created 185 tokens.
Ripple’s ultimate goal with the RLUSD launch is for XRPL to perform at a level comparable to its industry counterparts. Although the official launch is still pending, Japan’s DMM Group has already announced its intention to develop an RLUSD rival.
Another new improvement on the XRPL is the addition of Ethereum-compatible smart contracts via a new sidechain. Though this new push has sparked serious community backlash, it remains a major update developers are looking forward to.
Tokenization efforts on XRPL: Explorer Upgrade
Another notable protocol development is introducing a new XRPL Advanced Search engine. This service is anticipated to be useful for XRPL developers, geeks, sleuths, wallet providers, and exchange operators.
They can use the engine to search through over 3.4 billion transactions and filter by over 100 fields within milliseconds. Users have been urged to submit valuable feedback or bug reports as the search engine is still developing.
An increase in TVL usually leads to the appreciation of a project’s native token and vice versa. This means XRP’s price will likely soar if the increase in XRPL’s TVL is sustained. However, XRP’s recent price action has not played out this scenario.
As of this writing, XRP was trading at $0.5461, down 2.6% in the past 24 hours. The trading volume also dropped by 21% to $880,165,662. The declining price suggests that XRP will need other measures beyond an increasing XRP Ledger TVL to turn around its current bearish drawdown.
