Ripple recently announced a partnership with the Axelar Foundation to enhance interoperability within the XRP Ledger (XRPL) blockchain. The collaboration aims to focus on advancing the tokenization of real-world assets (RWAs) while strengthening the DeFi ecosystem on layer 1. By integrating the Axelar network with the XRPL, developers will have access to the platform’s native DEX, upcoming AMM, and renowned payment system known for its security and efficiency.
Tokenization of real-world assets has become a major trend in the crypto industry, attracting interest from both individual users and institutional players. The Axelar Foundation aims to leverage this trend by facilitating the adoption of blockchain technology through the tokenization of RWAs. Additionally, the partnership with Ripple will enable the deployment of cross-chain dApps directly on the XRPL, expanding the platform’s capabilities and interoperability.
The collaboration between Ripple and the Axelar Foundation builds upon the XLS-38 proposal to improve interoperability within the XRPL ecosystem. By extending interoperability beyond XRPL and linking it with Axelar’s network of interconnected blockchains, developers will have access to more ecosystems and opportunities for multi-chain innovation. The addition of General Message Passing (GMP) by Axelar further enhances XRPL’s capabilities, allowing for secure cross-chain exchange of data and function calls.
The XRP Ledger has been operational for over a decade, witnessing fluctuations in network activity. According to a recent Messari report, active addresses on XRPL decreased by 31.3% in the fourth quarter, while transactions increased by 22.7%. Notably, there was a significant surge in NFT mints, experiencing a 491% increase quarter-over-quarter, leading to a 170% rise in total NFT transactions. In Q4’23 alone, there were 3.4 million NFT mints, highlighting the growing interest in non-fungible tokens on the XRPL platform.
Ripple’s partnership with the Axelar Foundation represents a significant step towards enhancing interoperability and advancing the tokenization of real-world assets within the XRP Ledger blockchain. The integration of Axelar’s network with the XRPL will open up new pathways for utility and innovation, benefiting developers and users alike. With the continued growth of network activity and the rise of NFT transactions, the future looks promising for XRPL as it expands its reach and capabilities in the blockchain ecosystem.
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