After years of testing, the XRP Ledger will finally launch its Ethereum Virtual Machine-compatible sidechain in the second quarter of 2025.
The development aims to expand XRP’s utility beyond its traditional payment role by addressing alleged limitations in DeFi’s programmability.
The sidechain operates on a Proof-of-Authority (PoA) consensus mechanism, selected for performance and efficiency. Its targeted metrics are over 1,000 transactions per second and transaction costs below $0.01.
This initiative represents a strategic effort to attract developers from the larger EVM ecosystem and provide new avenues for applications on the XRP Ledger. By lowering the barrier to entry, the sidechain may foster a more diverse application environment for XRPL’s user base, which holds over six million wallets.
The use of wXRP for transaction fees introduces a new demand mechanism for the XRP token, tying its utility directly to the activity level on the EVM sidechain. This could extend its tokenomics beyond its primary function in facilitating cross-border settlements.
The project’s structure as a sidechain allows these new capabilities to be introduced without altering the XRPL mainnet’s core protocol, which remains optimized for payments. The mainnet launch of the XRPL EVM Sidechain is scheduled to proceed in the second quarter of 2025.
