In what is a massive development for the network, Ripple is set to add Ethereum-compatible smart contracts to its XRP Ledger. Indeed, the new smart contracts will exist in a side change. Moreover, it will play a crucial role in expanding the overall functionality to support more elaborate applications like decentralized exchanges.
The move will also have vital implications for the XRP token. The native asset of the Ripple network, XRP’s overall fundamentals, will increase. That could also have an impact on the price of the crypto. For much of August, the token has struggled along with the cryptocurrency market.
Also Read: Ripple Announces Major Partnerships That May Help XRP Claim $0.65
Ripple to Integrate Ethereum Smart Contracts
For much of the last month, XRP has struggled. Despite entering 2024 with immense potential, the asset has failed to live up to it. Yet, that looks like it’s beginning to shift. In the last 24 hours, the token is up 2.3% and trading above the $0.56 mark, according to CoinMarketCap.
That is likely driven by some important announcements that have come from Ripple Labs to start September. Among those, is the decision for Ripple to announce Ethereum smart contracts will come to the XRP Ledger. The move is another step forward for the optimistic blockchain network.
Also Read: Ripple XRP Weekly Price Prediction: Can It Reclaim $0.75?
Smart contracts are programs that facilitate automated responses that are necessary for any blockchain transactions. They allow increased features for these transactions. Moreover, they can issue tokens, process a trade, or formulate their own DEX exchange.
“Progress towards smart contract functionality is already underway in the XRP Ledger ecosystem with the XRPL EVM sidechain,” Ripple said in a press release. “This sidechain will bring Ethereum Virtual Machine (EVM) compatibility to the XRP community,” they added.
Additionally, the company noted it will equip developers with familiar tools and programming languages. Altogether, working to broaden, “the XRP Ledgers appeal to a global developer community.”