XRPL DeFi TVL Grows from Previous Lows, But XRP Price Fails to Respond

Ripple Labs' XRP Ledger (XRPL) has set a key DeFi milestone as its Total Value Locked (TVL) rebounded from previous lows.

The XRP Ledger (XRPL), developed by Ripple Labs, has achieved a significant DeFi milestone as its Total Value Locked (TVL) has rebounded from previous lows.

According to recent data from DefiLlama, XRPL’s TVL now stands at $14.97 million.

While this figure may seem small in comparison to its rivals, it showcases success considering XRPL’s historical trends.

XRPL DeFi TVL Surges from Previous LowsBack in August, XRPL’s TVL had plummeted to as low as $269,887, casting a negative light on the asset’s DeFi prospects.

At the time, concerns were raised by market experts regarding the implications of the declining TVL value for XRP.

However, the latest figure suggests that investors are now paying closer attention to the XRP ecosystem.

For those unfamiliar, TVL refers to the total value of an asset that is locked or staked in a protocol’s DeFi ecosystem.

TVL serves as an important metric in evaluating a project’s quality and popularity.

Much like 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 still lags 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 LedgerThe growth in XRPL’s TVL comes as several developments are unfolding for the protocol.

For example, XRP Ledger is set to get its dedicated stablecoin from Ripple Labs. The blockchain payment company is finally launching RLUSD on the XRP Ledger.

Test minting for the proposed stablecoin on XRPL and the Ethereum blockchain is already underway by Ripple.

The minting, which is part of a beta test on the XRPL, created 185 tokens.

With the launch of RLUSD, Ripple ultimately aims for XRPL to operate at a level that is competitive with its peers in the industry.

While the official launch is still pending, Japan’s DMM Group has already announced plans to develop a rival RLUSD variant.

Another new addition to the XRPL is Ethereum-compatible smart contracts via a new sidechain.

While this latest push has sparked serious community backlash, it is a major update that developers are looking forward to.

Tokenization Efforts on XRPL: Explorer UpgradeOne other notable protocol improvement is the introduction of a new XRPL Advanced Search engine.

This service is expected to come in handy for XRPL developers, geeks, sleuths, wallet providers, and exchange operators.

They will be able to use the engine to search through over 3.4 billion transactions and filter by over 100 fields within milliseconds.

As the search engine is still in development, users are encouraged to submit valuable feedback or bug reports.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.

At the moment, XRP is 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.

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