XRP Ledger Expands into Ethereum DeFi with Sidechain Testnet

XRP Ledger Expands into Ethereum DeFi with Sidechain Testnet

XRP Ledger (XRPL) has taken a major step toward integrating with Ethereum, signaling its official entry into the DeFi market. On April 1, Peersyst launched a public testnet for an Ethereum-compatible sidechain dedicated to XRPL, according to EtherNews.

Bridging XRPL and Ethereum

This testnet marks the first implementation of Ethereum Virtual Machine (EVM) capabilities on XRPL. The project is a collaboration between:

• Peersyst

• RippleX (Ripple’s development division)

• Axelar Network (interchain platform)

• Common Prefix (blockchain technology firm)

The sidechain supports integration with Ethereum wallets like MetaMask and enables seamless asset transfers via a Squid Router-powered cross-chain bridge.

Developer Access & Ecosystem Growth

Peersyst is providing developers with:

• Faucets for test tokens

• Discord-based faucet services

• Technical documentation

Ripple’s CTO, David Schwartz, described the project as a key part of XRPL’s smart contract expansion strategy, anticipating an influx of Ethereum-native developers. Peersyst plans to gradually onboard validators and partners before launching on the mainnet.

Ethereum’s DeFi Market Dominance

This XRPL sidechain launch highlights its strategic expansion into the Ethereum DeFi ecosystem. Meanwhile, Ethereum reclaimed its top spot in the decentralized exchange (DEX) market in March, surpassing Solana.

March DEX Trading Volumes:

• Ethereum: $64.6B

• Solana: $52.6B (22% lower)

The shift is attributed to the declining meme coin frenzy on Solana and rising demand for Ethereum’s liquidity, trust, restaking, and derivative platforms.