Ripple Plans XRP Staking Overhaul to Boost DeFi
Ripple is exploring an XRP staking overhaul as part of Amendment 17 to boost DeFi integration. Under the proposal, Ripple would allow validators, market makers, and liquidity providers to stake up to 13% of its escrowed XRP. The XRP staking overhaul aims to introduce Proof-of-Stake features on the XRP Ledger and provide staking rewards to participants. Ripple’s co-founder, Chris Larsen, supports the plan to draw DeFi capital and enhance network security. The changes could create new yield opportunities and expand XRP’s utility in decentralized finance. While the SEC lawsuit against Ripple focuses on securities classification, it does not explicitly ban staking. Ripple continues discussions with ecosystem partners and plans to gather community feedback through its portal. If approved, the staking overhaul could strengthen XRP liquidity, attract DeFi developers, and position XRP for a more active role in DeFi markets. Implementation details and timelines remain under review.
Bullish
Introducing an XRP staking overhaul is bullish for traders because staking rewards can drive new demand and lock up supply, supporting XRP’s price. In the short term, anticipation of staking yields may trigger increased buying from validators and liquidity providers. Over the long term, Proof-of-Stake functionality can enhance network security, attract DeFi projects, and broaden use cases. Historical precedents, such as Ethereum’s transition to staking, led to greater protocol adoption and price appreciation. Similarly, Cardano’s staking model helped boost ADA’s market appeal. While regulatory clarity around staking in the SEC lawsuit remains, the overall move toward staking positions XRP to compete more effectively in DeFi. Traders may view this as a catalyst for higher volatility and upward price momentum.