As XRP Ledger (XRPL) concludes 2025 with solid progress in smart contracts, interoperability, and asset tokenization, there are growing calls for 2026 to focus on user-friendliness, decentralized finance (DeFi) liquidity, and scalable app support.
Vet, XRPL's lead validator, described 2025 as "a 'great' year in many ways." He highlighted the significant progress made in smart contract development, particularly in the area of smart contracts. "With the launch of the alpha testnet, we now have an environment where developers can actually deploy and test," he explained. Vet also noted that "community awareness has also increased," indicating that the technology has now moved from concept to actual deployment.
DeFi has cooled since its initial hype, but its foundation remains strong.
However, decentralized finance (DeFi) has cooled since the meme coin boom last year. Vet's assessment is that XRP-based DeFi, which got off to a strong start in late 2024 with the meme coin craze, has seen activity decline over time. Nevertheless, he noted that "activity based on DEXs is actually higher than before," indicating that the foundation remains intact. He emphasized that 2026 presents an opportunity to expand this in a more sustainable manner.
Interoperability and app layer improvements as well
In the area of interoperability, Wormhole and Axelar bridges went into production last year. They even connected assets with revenue-generating capabilities to XRPL. Vet also suggested future technological developments, saying, "ZKP, or zero-knowledge proofs, open up the possibility of 'trust-minimized bridges.'"
Regarding the application layer, he stated, "Existing projects and wallets have clearly improved in terms of functionality and UI." However, he pointed out the lack of innovative services, saying, "No new app has yet emerged that will captivate the community." While improving the user experience (UX) is effective in retaining existing users, a killer app that creates "gravity" is essential for large-scale expansion.
Tokenization is strong, but distribution channels remain a challenge.
Vet evaluated XRPL's tokenization performance in 2025 as "very strong, centered around RLUSD." He also highlighted the growth potential, citing the emergence of various stablecoins and tokenized funds. However, he noted that "these distribution channels are still lacking." He explained that simple issuance alone is ineffective; liquidity and accessibility through connections to DeFi and real-world applications are key.
In 2026, infrastructure and user experience will be key challenges.
Panos Mekras, co-founder of Anodos Finance, identified infrastructure improvements and expanded incentives as key priorities for 2026. He emphasized, "Batch transaction and sponsorship fee features must be implemented as soon as possible. These are essential to reducing user friction and attracting regular users to XRPL."
He also called for increased inflow of "real-backed assets (RWAs)" such as yield-generating stablecoins, stocks, and commodities. Above all, he urged the XRPL Foundation to invest substantial funds to strengthen developer tools and foster killer consumer apps. Vet fully agreed.
DeFi liquidity has also emerged as a key challenge. Panos pointed out the low liquidity of automated market makers (AMMs)-based decentralized exchanges (DEXs) as a "growth impediment." This suggests the need to shift the existing development culture, which prioritizes technology over profit.
Currently, XRP (Ripple) is trading at $1.86 (about 2,679 won).
๐ Market Interpretation
While XRP Ledger has made significant technological progress in 2025, expanding its user base, including user experience, app ecosystem, and DeFi liquidity, is identified as a key challenge for 2026.
๐ก Strategy Points
- UX innovations are needed, including killer app acquisition and batch transaction features.
- Strengthening real-world applications by securing distribution channels for tokenized assets centered around RLUSD.
- The XRPL Foundation's clear incentive and funding policies are key to expanding the ecosystem.
๐ Glossary
- Zero-Knowledge Proof (ZKP): A cryptographic technique that verifies without revealing personal information.
- Batch Transaction: A method of processing multiple transactions at once to reduce fees and waiting times.
- Real-World Assets (RWAs): Tokenized real-world assets such as real estate and stocks into digital assets.
- Decentralized Exchange (DEX): A blockchain-based exchange where transactions occur directly between users.
๐ก Want to know more? AI-prepared questions for you:
A. XRPL has made progress with the launch of its smart contract alpha testnet, expansion of interoperability based on Wormhole and Axelar, and strengthening tokenization centered around RLUSD.
A. With the release of the alpha testnet in 2025, practical development use began, providing an environment where developers could deploy and test contracts directly.
A. Killer apps are a key driver of user acquisition, providing unique value to a platform. Currently, XRPL lacks a notable, mainstream app.
A. ZKP (Zero-Knowledge Proof) enables verification without exposing user information, and plays a key role in implementing a bridge based on cryptography rather than trust.
TP AI Precautions
This article was summarized using a TokenPost.ai-based language model. Key points in the text may be omitted or inaccurate.
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