XRP bulls plan comeback with arrival of wXRP in DeFi
- Wrapped XRP will be added to the Ethereum blockchain in December, increasing the utility of the altcoin.
- The arrival of XRP on DeFi opens new markets and uses in the decentralized application ecosystem.
- Experts predict Ripple's win in SEC vs. Ripple case, implying a bull run in XRP.
Alongside positive developments in the SEC vs. Ripple case, the XRP network has bullish updates in its ecosystem. Wrapped recently announced support for XRP (wXRP) on the Ethereum blockchain, starting December 2021.
XRP arrives on Ethereum blockchain as wXRP
Behind the scenes of the ongoing SEC vs. Ripple case, the altcoin has made significant developments in its ecosystem. Wrapped tokens are pegged to the value of another cryptocurrency.
Wrapped has revealed that wXRP will hit the Ethereum blockchain in December. The wXRP token will be backed 1:1 by XRP in the DeFi ecosystem.
David Schwartz, CTO of Ripple, shared the news with crypto Twitter.
Wrapped XRP is coming to Ethereum! Great news for those that want to access XRP within Ethereum wallets, DeFi, and smart contracts.
— (@JoelKatz) November 1, 2021
It’s a multichain after all. https://t.co/36shyqF0Nj
Wrapped XRP will place XRP in custody with Hex Trust, a licensed and insured provider of bank-grade custody for digital assets. The critical difference between XRP and wXRP is that the wrapped version of the altcoin can be used in smart contracts.
As market participants allocate more capital, wXRP (tied to XRP) boosts utility and demand in the DeFi ecosystem.
Proponents have criticized the arrival of wXRP due to high transaction fees on the Ethereum network. However, the addition of XRP to multi-chain is expected to boost XRP's utility.
@WKahneman, a crypto proponent, expects long-term benefits in XRP from the arrival of wXRP on DeFi.
Will there be incentive to use wXRP in defi? Sure. XRP holders who want to borrow on their holdings? Lots of people grab coins just for staking/liquidity pools, etc.? Will it alter XRP's course? Probably not, but long term, XRP benefits the more ubiquitous it becomes.
— WrathofKahneman (@WKahneman) November 1, 2021
In response to the announcement, XRP price posted 11% gains and started an upward climb. Ben Armstrong, cryptocurrency analyst and YouTuber, believes that the SEC vs. Ripple case will close soon.
Brian Armstrong speaks on Ripple #XRP This is bound to close soon. #XRParmy We know where this is going! pic.twitter.com/GgUsVP2muy
— Ben Armstrong (@Bitboy_Crypto) November 1, 2021
@kingthies, a cryptocurrency analyst, has set a target of $3 for XRP. The analyst expects the altcoin to be relisted on top exchanges soon.
$XRP @ $1.11 -- assuming it breaks out whenever it's re-added everywhere, I'd imagine its a quick rip to $3+ pic.twitter.com/VSLmAq3zSI
— Crypto Thies (@kingthies) November 2, 2021
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
