Transcription
XRP is on the brink of something big. The long-awaited XRPL EVM side chain could finally unleash a tidal wave of new apps, liquidity, and DeFi for XRP. And with dozens of projects lining up, the next chapter for XRP might be its most exciting yet. That is the most exciting.
So, in today's video, we'll tell you everything you need to know about the XRPL EVM side chain, where it came from, how it works, and what it could mean for XRP. My name is Nick, and this is a video you cannot afford to miss.
Before we go any further, remember nothing in this video is financial advice. This is purely educational content here to help you stay informed about the XRPL EVM side chain. Also, just so you know, nobody on the Coin Bureau team holds XRP as part of their personal crypto portfolios. However, some of us do hold altcoins in the XRP ecosystem as a higher beta play on XRP's potential. If you're curious about which altcoins we're watching and the ones we're personally considering adding to our portfolios, you'll want to check out the Coin Bureau Club. That's where we dive deep into small-cap projects every week, share daily crypto insights, and break down emerging narratives within our members' Discord. The link for that will be down below.
Now, to understand why the XRP ledger EVM side chain, or XRPL EVM for short, matters, it's worth looking back at the unique role it has played in crypto. When the OG XRPL launched in 2012, it was built with a single goal: to move money quickly, cheaply, and reliably, especially for cross-border payments. For over a decade, it's done that job arguably better than any other chain, becoming the backbone for remittance and institutional finance globally. But as the rest of the crypto world embraced DeFi, NFTs, and permissionless smart contracts, XRP found itself increasingly on the sidelines.
And this wasn't an accident, as the XRPL's consensus mechanism was never designed for general-purpose programmability. Its creators prioritized stability and high throughput, aware that opening the door to arbitrary smart contracts could compromise the very qualities that made XRPL the leader in its existing niches. For years, this was the source of frustration. Developers and XRP holders watched as Ethereum, Solana, and newer chains attracted billions in DeFi activity while XRP remained limited to various forms of payments and tokenization.
But the real shift began when Cosmos started to gain momentum. Unlike traditional smart contract platforms, Cosmos offered a different model: app-specific blockchains, each custom-built for a purpose, all connected by the interblockchain communication protocol, or IBC for short. And this opened up the possibility of linking different networks together without sacrificing their individual strengths.
Persist Technology, with experience in both Cosmos and XRP, recognized the opportunity to bridge these two worlds together. By late 2023, it had started working closely with Ripple X, the platform and developer initiative provided by Ripple Labs and XRP's growing open-source community, eventually unveiling the XRPL EVM side chain project. The plan was simple: build a fully Ethereum-compatible side chain using the Cosmos SDK and Cosmos's next-generation Comet BFT consensus, connected directly to the XRP ledger with XRP as the native currency. The goal was to enable DeFi, NFTs, and all the flexibility of the EVM without slowing down or destabilizing the XRPL itself.
Once the groundwork was in place, momentum built quickly. A devnet was launched, followed by a public testnet, and it wasn't long before Ethereum developers began migrating their apps and tooling over. For the first time, XRP holders could see a path to the kind of dApps and liquidity that had previously only existed on other blockchains. Thanks to the Cosmos IBC, XRPL EVM didn't just become another EVM fork. It became part of the wider multi-chain ecosystem, with all the benefits of cross-chain liquidity and composability. And now that the mainnet has gone live, the XRPL EVM side chain is making XRP programmable in ways that simply weren't possible before.
And by the way, guys, if you're enjoying this video so far, then smash that like button to give it a boost. And we've also noticed that at least 34% of the people who watch these videos are not subscribed. So, if that's you, you can change that right now by hitting that subscribe button. And you may as well hit the bell as well, just for good measure.
Back to the video. So, how does the side chain actually work, and what makes it different from everything else out there? Well, in case you forgot, the XRPL EVM side chain was built using the Cosmos SDK and is secured by the Comet BFT consensus. What this means in practice is fast block times, quick finality, and a modular structure that supports future upgrades without disruption. In practical terms, you're looking at average block times of just 3 to 5 seconds, transaction costs typically well below 1 cent, and support for over 1,000 transactions per second. That level of speed and efficiency is what makes the network genuinely suitable for DeFi, DEXes, and dApps that need to operate at scale.
Now, unlike many new blockchains that use proof-of-stake, the XRPL EVM side chain will start off with proof-of-authority. In simple terms, this means a rotating set of up to 32 trusted validators are responsible for confirming transactions and blocks. These validators are chosen through an on-chain democratic process, with new members being voted in and all proposals and votes being made public. With so few validators, the network is quite centralized. But on the flip side, this makes it fast and cheap. The priority here is on stability and reliability, with a clear roadmap to gradual decentralization as the ecosystem grows.
Where the side chain really stands out, though, is in its connection to both the XRP ledger and the broader multi-chain world. If you want to use DeFi protocols or dApps, you simply bridge your XRP from the XRPL. Then that XRP is locked up, and an equivalent amount called eXRP is minted on the EVM side chain, ready for use. Thanks to the IBC, the XRPL EVM side chain is natively connected to the entire Cosmos ecosystem. And thanks to Axelar and Wormhole, it can also bridge assets to dozens of other EVM-compatible and non-EVM chains, making it compatible with just about every other major DeFi ecosystem you can think of.
Developers aren't left out either. The side chain is fully EVM compatible, and that means Solidity smart contracts, MetaMask support, and all the usual EVM tools. Existing dApps can migrate with minimal changes, and users can access new services using wallets they already know and trust. Notably, the infrastructure includes familiar Cosmos and EVM features like jailing for misbehaving validators and, of course, slashing. The end result is a programmable EVM-compatible network built on XRP's liquidity, secured by its own validator set, and fully interoperable with Ethereum, Cosmos, and beyond.
But as always, the real question comes down to incentives. How does this new architecture affect XRP itself? And what does it mean for its tokenomics? Let's break down what's actually changing.
First up, transaction fees. Every time you trade on a DEX, mint an NFT, or interact with a DeFi protocol on the XRPL EVM side chain, you pay fees in eXRP, and that's the bridged version of XRP, which is used as gas. But here's the important distinction: While on the XRPL mainnet, transaction fees are burned, permanently removing a small amount of XRP from circulation. On the XRPL EVM side chain, those transaction fees are collected by validators as rewards for securing the network.
Perhaps the biggest change for XRP holders is how you can use your coins. In the past, most XRP just sat idle or got used for payments. But now, thanks to the EVM side chain, you can put your XRP to work as DeFi collateral, borrowing stablecoins, farming yields, and aping into meme coins, all without selling your XRP. This approach is what has made ETH so powerful on Ethereum. If the XRPL EVM matures, borrowing and leverage could become the norm, especially among XRP whales.
On top of that, we have stablecoin integration. RLUSD, Ripple's stablecoin, is positioned to become the backbone for lending, borrowing, and trading on this side chain. If adoption takes off, expect much more of RLUSD's supply to migrate to the XRPL EVM. And this could make XRP's value less about spot trading and more about demand from DeFi users, adding a whole new use case to XRP.
Now, this raises the question: where do you look for opportunities as this new ecosystem gets off the ground? Well, whenever a new programmable blockchain launches, there's a familiar rush, a builder's race to deploy the core apps that will form the foundation of this ecosystem. The XRPL EVM side chain is already following this playbook, and the earliest projects to launch could end up shaping the network for years to come.
So, what should you be looking out for? First and foremost, the emergence of a decentralized exchange is practically a given. If you look back at the history of Avalanche, Polygon, or BNB chain, the very first DEXes to secure liquidity and trading pairs typically become the beating heart of all on-chain activity. Expect to see early versions of Uniswap or PancakeSwap equivalents appear within days or weeks of mainnet launch. The teams that establish these DEXes, especially those with strong community backing and transparent security practices, will likely dominate this space.
Closely following behind will be lending and borrowing protocols. And these platforms make it possible to unlock capital from eXRP holdings without selling. As soon as borrowing against XRP becomes possible, you can be sure that whales and active DYOR users will, of course, take notice. This is the mechanism that powered the rise of platforms like Aave on Ethereum, and similar protocols on the XRPL EVM will almost certainly become core infrastructure.
But it's not just about DEXes and lending. Stablecoins are poised to play a major role in XRPL EVM's growth as well. In addition to RLUSD, Axelar and Wormhole integrations will allow USDC, USDT, and other stablecoins to flow from dozens of other blockchains, providing ample liquidity and new opportunities. The projects that make it easy to swap, bridge, and farm stablecoins will find themselves at the center of user activity.
And this is where things get really interesting. As all these new protocols go live, the ripple effects won't be limited to the XRPL EVM alone. The Cosmos ecosystem, in particular, stands to benefit as XRP capital is unlocked and deployed across IBC-connected chains. Protocols like Osmosis, for example, which is, of course, the main DEX on the Cosmos ecosystem, could see a fresh wave of trading volume and yield farming. A capital rotation within the Cosmos ecosystem, from large caps like ATOM down to smaller projects, could follow the same pattern we've seen during previous DeFi booms on other networks. Cosmos DeFi, in particular, has often struggled with liquidity and user adoption. By tapping into XRP's market cap and giving its holders a reason to engage with Cosmos native protocols, the side chain could provide the ecosystem-wide spark that Cosmos has been waiting for, making it perhaps the best place to look for upcoming gems.
Not financial advice. Of course, this early period will attract more than just serious builders. Expect a wave of NFT launches, experimental gaming platforms, and inevitably, meme coins, some of which may catch fire, while many fizzle out just as quickly. The lesson from past cycles is that while early DeFi and infrastructure projects tend to have staying power, speculative assets are to be approached with caution. Always pay close attention to the teams that are first to deploy DEXes, lending platforms, and core infrastructure, as they often end up as the backbone of every major ecosystem.
But before we get carried away, let's take a step back and look at the big picture. What does all of this actually mean for XRP and the wider crypto market? One of the most important changes is how the XRPL EVM side chain could affect supply and demand dynamics for XRP itself. In past cycles, every big rally in XRP eventually ended the same way: heavy spot selling from long-term holders, leading to sharp parabolic tops and deep corrections. With the EVM side chain in play, that pattern could finally change. Instead of selling, XRP holders now have the option to borrow stablecoins against their eXRP, unlocking capital to chase DeFi opportunities while keeping exposure to the underlying asset. And that means less supply flooding the market during rallies and potentially more gradual, sustained price action. Instead of the dramatic peaks and sharp reversals we've seen in past cycles, XRP could see calmer moves, slowly grinding higher or lower as the market cycle progresses.
Additionally, with the XRPL EVM side chain now live, XRP is in a strong position to take part in what might be crypto's next big narrative: PayFi. And if you want the full story, we have a dedicated video for you right over here. But the TL;DR is that PayFi is all about using blockchain to deliver instant, low-cost, programmable payments, bringing together the worlds of traditional finance and DeFi. If PayFi gains traction, stablecoins like RLUSD on XRPL EVM could see significant growth, helping to streamline international settlements and make everyday payments faster and cheaper.
Zooming out, the impact goes well beyond just XRP. With the XRPL EVM now connected to Ethereum, Cosmos, and dozens of other blockchains, the side chain finally allows millions of XRP holders to put their assets to work across various different ecosystems.
Yet, the road isn't without its challenges. Technical growing pains are almost certain, from unexpected outages to governance debates. There's also the reality that some XRP supporters, drawn to its payment roots, may be skeptical of this shift towards open DeFi and speculation. But crypto doesn't stand still, and those projects that adapt are often the ones that survive and thrive over the long term.
So, while the launch of the XRPL EVM side chain won't change XRP overnight, it will set in motion a wave of experimentation, capital flows, and new protocols that could substantially reshape XRP's future and the structure of its cross-chain DeFi as well. For the first time, XRP isn't just watching the DeFi revolution from the sidelines. It's actually participating in it.
And if you're curious which DeFi protocols have the potential to take off in this bull run, check out our latest video right over here. And if you haven't subscribed to the channel yet, you can do that right over here. Thanks so much again for watching. This is Nick signing off. I'll see you guys again soon.