Coinspeaker
Unusual DeFi TVL Trend Spotted on XRP Ledger (XRPL)
In an unusual turn of events, the Decentralized Finance (DeFi) Total Value Locked (TVL) on the XRP Ledger has seen a drastic drop in just 24 hours. Precisely, the TVL went from over $12 million on Wednesday, July 31 to around $431,355 as of writing. Noteworthy, this is the first time in a long while that the protocol is experiencing a plunge this deep.
Investors’ Confidence in XRP Ledger Wobbles
The cause of this unusual trend is presently unknown but it suggests that market participants are pulling out their previously locked tokens. Moreover, this reflects declining confidence in the XRP Ledger.
TVL is a metric that usually gives investors insight into the likelihood of a DeFi protocol’s success by measuring its locked capital.
A high TVL is mostly associated with high demand and consumers’ willingness to invest significant capital in the protocol. It could otherwise indicate a vote of confidence in the protocol, encouraging other users and investors to get on board. A TVL increase is equivalent to a rise in adoption overall. Hence, a lower TVL means less capital and lesser returns.
Drawing on this TVL metric, the price of XRP is also not looking good amid a general market decline. The token is currently trading at $0.6065, after losing 6.48% of its value in the past 24 hours per data from CoinMarketCap. Its trading volume is equally down by 32.31% and sitting at $2.05 billion. Should this plunge persist, XRP’s position as the 7th most traded cryptocurrency could face jeopardy.
Despite these bearish on-chain trends, XRPL’s reduced TVL does not correspond with the traction that the protocol is receiving these days.
XRPL Welcomes Multiple Projects
As a new month unfolds, Ripple announced the introduction of US Treasury bills on XRP Ledger in collaboration with tokenization platform OpenEden. Before now, over $1 billion of these short-term debt obligations backed by the US government, existed in their tokenized version on public blockchains like Polygon, Ethereum, and Stellar.
Similarly, Ripple bagged a collaboration extension with Archax, a digital asset exchange regulated by the United Kingdom’s Financial Conduct Authority (FCA). The deal involved helping to onboard more institutional investors seeking to tokenize real-world assets (RWA) on the XRPL.
“Ripple is excited to see Archax’s vision of driving the adoption of blockchain and digital assets technology amongst financial institutions come to life, while further underlining the credentials of the XRPL as one of the leading blockchains for RWA tokenization,” Markus Infanger, SVP at RippleX, said.
Tokyo-based financial service provider SBI Holdings announced the launch of its Non-fungible token (NFT) services on the XRP Ledger early last month. Users got access to the NFTs nicknamed “Myaku N!” on the EXPO2025 Digital Wallet almost immediately as the minting of the World Expo 2025 NFTs started on the XRPL.
