XRPL readies institutional DeFi with native lending protocol — will XRP rally?
Key XRPL stakeholders, led by XRP treasury firm Evernorth, are positioning the Ripple-backed ledger for “institutional DeFi” by adopting a native XRP lending protocol (XLS-66) currently on testnet. Evernorth said the protocol will be its core digital-asset strategy and aims to enable single-asset vaults and fixed-rate loans, which the firm describes as a potential multi-billion-dollar annual yield opportunity for the XRP ecosystem. XRPL’s DeFi TVL has fallen from roughly $100 million to $60 million, trailing rivals like BNB Chain ($6.5B TVL) and Solana ($9.3B TVL). Ripple’s stablecoin RLUSD recently surpassed $1 billion in supply, signaling some institutional traction. On-chain metrics show mixed signals: 42 wallets holding 1M+ XRP resumed accumulation for the first time since September, per Santiment, but 30-day whale flow remains net-seller according to CryptoQuant, though selling pressure eased in January. XRP price was consolidating near $1.70 at publication. For traders: the XLS-66 lending upgrade could materially increase on-chain liquidity and yield products for XRP if adopted by institutions, but current low TVL and mixed whale flows mean short-term volatility and limited automatic upside until adoption and TVL growth are proven.
Neutral
The news is neutral-to-cautiously bullish but not outright positive. Institutional adoption of a native lending protocol (XLS-66) is potentially significant: it could create single-asset vaults, fixed-rate loans and new yield products that attract capital and raise XRPL TVL—factors typically bullish for token demand. Evernorth’s endorsement and RLUSD surpassing $1B indicate institutional interest. However, current metrics temper optimism: XRPL’s DeFi TVL is small (~$60M) versus major rivals, and whale flow remains net-seller despite renewed accumulation by some large wallets. Historically, protocol upgrades and institutional commitments can take months to translate into meaningful price appreciation (examples: Ethereum yield products growth before strong ETH rallies; Solana/BNB liquidity deepening after major DeFi inflows). Therefore, the short-term impact is likely limited volatility and mixed trader reactions until XLS-66 moves from testnet to live adoption and TVL materially increases. Long-term implications are potentially bullish if the protocol gains institutional traction and yields substantial on-chain liquidity.