HomeNewsCould Ripple's XRP Hit $20? Exciting Proposal Shakes Up XRPL

Could Ripple’s XRP Hit $20? Exciting Proposal Shakes Up XRPL

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  • RippleX developers proposed XRPL-native lending protocols, including XLS-64d, XLS-65d, and XLS-66d, to improve DeFi.
  • Community interest for the new protocol is robust, with over 2.1 million XRP locked in liquidity pools despite market volatility.

On April 11th, the developers of RippleX introduced a novel lending protocol exclusively on the XRP Ledger, aiming to upend the decentralized finance sector.

By enabling a dynamic peer-to-peer system for lending and borrowing digital assets person-to-person without the use of conventional financial intermediaries, Vito Tumas and Aanchal Malhotra’s novel protocol expands the possibilities on the XRP Ledger.

While promising disruption, many in the community questioned whether such an ambitious protocol could achieve widespread adoption without additional innovations to address existing limitations.

However, the founders were committed in their vision of reshaping Decentralized finance through extending the XRPL in a strategically pragmatic manner.

Improving DeFi’s Capabilities

By giving users more chances to participate in the expanding DeFi market, this creative concept has the potential to greatly improve the XRPL’s DeFi capabilities. By enabling users to tokenize their assets and earn interest by depositing these tokens into specialized lending pools, it encourages flexibility and reusability.

Important guidelines included in the protocol are intended to simplify and protect XRPL transactions.

  • XLS-64d: Allows a pseudo-account to be associated with several ledger entries, making it easier to track balances and issue tokens.
  • XLS-65d: Adds a Pool ledger item to represent a single tokenized asset pool, simplifying interactions and lowering the number of ledger entries necessary.
  • XLS-66d: Defines the actual lending protocol, leveraging the structure established by XLS-65d to manage liquidity providers’ assets and facilitate efficient peer-to-peer transactions.

Engagement of the Community and Market Reaction

The XRP community responded quite positively to the news of the XRPL-native lending protocol. According to latest report from ETHNews, the number of XRP tokens committed to liquidity pools has increased from over 820,000 to over 2.1 million.

The community’s optimism about this new protocol’s ability to improve the value proposition of the XRP Ledger ecosystem is reflected in this notable growth.

The market has responded indifferently, despite the enthusiastic reception from the community. The price of XRP stood at roughly $0.4895, according to CoinMarketCap. It had dropped somewhat over the previous day—by 0.07%—and significantly over the previous week—by 18.90%.

Support from the CTO of Ripple

Chief Technology Officer of Ripple, David Schwartz, has openly supported the proposed loan protocol, saying on social media platform X that it may greatly increase the XRPL’s new utility.

The protocol, according to Schwartz, will help the local decentralized exchange (DEX) play a key role in delivering financial services that are easier to use, more effective, and transparent.

With the goal of supporting the decentralized banking industry, the RippleX developers are implementing an XRPL-native lending protocol.

As a result, expert analysts are becoming more optimistic and believe that XRP may reach $20 in the upcoming bull market cycle. Watch the following video on YouTube to learn more about this development.

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Syofri is an active forex and crypto trader who has been diligently writing the latest news related to the digital asset sector for the past six years. He enjoys maintaining a balance between investing, playing music, and observing how the world evolves. Business Email: info@ethnews.com Phone: +49 160 92211628