XRPL EVM Sidechain Struggles with Low TVL of $100,000

The XRPL EVM sidechain, a joint initiative by Ripple and its partners, has shown minimal progress in asset adoption, with a total value locked (TVL) of just $100,000 drawn from four blockchain sources. This figure has sparked debate within the industry, raising concerns about the effectiveness of the project and broader challenges in integrating blockchain technology across financial ecosystems [1].

Despite expectations for a significant increase in liquidity, the current TVL highlights the limitations in attracting widespread participation. Ripple executives, including President Monica Long, have emphasized the importance of regulatory clarity in the U.S., stating that such clarity could drive growth not only for the XRPL EVM but for the broader blockchain sector. However, the current low adoption rate contrasts sharply with the rapid liquidity expansions seen in earlier Layer 1 blockchain launches, such as Solana and Cardano [1].

The subdued interest in the XRPL EVM has also prompted strategic shifts among XRP stakeholders, with major deployments, like the $100 million allocation from VivoPower via the Flare network, focusing on alternative platforms. This divergence in capital allocation suggests a cautious stance from the market toward the EVM sidechain’s potential [1].

Industry participants are now calling for clearer U.S. regulations to invigorate broader blockchain innovation and adoption. While the XRPL EVM sidechain was envisioned as a tool to enhance interoperability, its current performance indicates a need for stronger incentives or clearer value propositions to attract developers and liquidity providers. Analysts suggest that, with favorable regulatory developments and continued strategic asset deployment, the XRPL ecosystem could yet achieve growth similar to that of previous successful blockchains [1].

Source: [1] XRPL EVM TVL Falls Short, Sparking Industry Debate (https://coinmarketcap.com/community/articles/6898ace39af91a539f4388a1/)