Ripple’s new push to develop a sidechain on the XRP Ledger (XRPL) could be “very bullish” for XRP, according to a popular crypto analyst.
The San Francisco payments firm said in a blog post earlier this month that blockchain development company Peersyst Technology is currently testing an Ethereum Virtual Machine (EVM) compatible sidechain for the XRPL.
In a new YouTube video, the pseudonymous analyst known as Guy breaks down to his 2.16 million subscribers why that could be great news for the price of XRP.
“In case you haven’t noticed, EVM support has sent many Ethereum competitors to the moon in the past, including Harmony and Fantom. XRP having an EVM sidechain could, therefore, be very bullish for XRP. This ultimately depends on how fast XRP’s EVM sidechain would be.”
Guy notes, however, that the EVM is “inherently limited” to a few hundred transactions per second (TPS), though he doesn’t think this will be a huge hurdle for Ripple.
“And this means that Ripple will have a lot of work to do to improve its TPS. This shouldn’t be too difficult to do, given that Avalanche, Near Protocol’s Aurora layer, and Solana’s upcoming Neon layer all leverage the EVM and can process thousands of transactions per second.
The one advantage XRP would have over most other EVM chains is its massive community of XRP holders. That said, XRP does have one big disadvantage, and that’s that it’s the only big cryptocurrency that’s been singled out as being a security by the SEC as part of its case against Ripple and co.”
XRP is trading at $0.46182 at time of writing. The 6th-ranked crypto asset by market cap is up more than 2% in the past 24 hours.
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