XRP News Today: Ripple's EVM Side Chain Launch Boosts ETH and XRP Interest

Ethereum (ETH) and Ripple (XRP) have seen a resurgence in interest as Ripple launched its EVM side chain, marking a significant development in the cryptocurrency landscape. The funding rates for both ETH and XRP have turned sharply positive, indicating a growing demand for long positions. ETH's funding rate stands at 0.0083%, while XRP's is at 0.0093%, the highest among top layer-1 protocols. This shift suggests a renewed interest in these assets, despite mixed on-chain activity and sentiment.

Open interest for ETH has gradually increased to over $14.9 billion, while XRP's open interest has stabilized around $1.68 billion. Both assets have shown a trend toward long positions, reflecting hopes of a recovery. ETH is currently trading at $2,458.03, with increasing activity, app fees, and token transfers. XRP is trading at $2.18, with bullish expectations of attempting a hike to $3. However, the growth for both assets remains relatively slow, indicating a more organic recovery. ETH is stuck in a tight range between $2,400 and $2,500, while XRP is shifting between $2.15 and $2.30.

A rise in ETH and XRP is seen as a potential sign for a revival of selected altcoins, despite the ongoing Bitcoin season. In the past month, both ETH and XRP traded sideways, failing to deliver the expected bigger breakout. XRP's recovery attempt comes despite the decision to abandon a cross-appeal for its lawsuit against the US SEC. For now, XRP can continue to trade based on a general agreement that the asset is not a security.

Ripple's launch of the EVM side chain is a strategic move to tap into Ethereum's liquidity and developer ecosystem. The side chain is EVM-compatible, allowing it to draw in more significant liquidity and bridge stablecoins and tokens. It also enables the creation of multi-chain smart contracts, potentially boosting the share of DeFi on the XRPL network. Developers can now deploy apps similar to those on Ethereum, connected via the Axelar bridge to the existing XRPL network. XRP users can already bridge ETH and USDC through Axelar’s technology.

Despite the high profile of XRP, the decentralized ledger often carries under 20,000 active addresses daily and around $58 million in total value locked. The EVM-compatible side chain aims to address these limitations by offering a more familiar toolset to developers and tapping into Ethereum's liquidity. This move aligns with Ripple's goal of retaining its unique ledger while providing a more developer-friendly environment.

In summary, the launch of Ripple's EVM side chain has sparked renewed interest in both ETH and XRP, signaling a potential revival of selected altcoins. The EVM-compatible side chain offers a strategic advantage by tapping into Ethereum's liquidity and developer ecosystem, potentially boosting the share of DeFi on the XRPL network. This development underscores the ongoing evolution of the cryptocurrency landscape and the strategic maneuvers of key players in the market.