At Least 25% of Value Deployed in DeFi Will Move Away from Ethereum & Accelerate on XRPL by EOY: Ripple Predicts
XRP has no place in Ripple’s 2021 predictions.
While XRP trades around $0.287, still down about 93% from its ATH, due to regulatory uncertainty surrounding it after the SEC sued Ripple and its top two executives for selling unregistered security, the company predicted regulatory clarity this year.
With the UK, Switzerland, Singapore, and Japan miles ahead, Ripple’s General Counsel Stu Alderoty predicts that crypto regulation will be a top priority for the Biden team.
“Intelligent, well-thought-out regulations communicated effectively and uniformly applied can help level the playing field and unleash innovation and further mainstream adoption here in the U.S.,” said Alderoty.
Besides the regulatory part, Ripple sees the line between banking and crypto blurring. General Manager Asheesh Birla anticipates more fintech competing with banks on a level playing field this year.
“The tide is turning,” Birla added that a fintech or crypto company might acquire a traditional financial institution.
And with this, the decentralized finance (DeFi) will see more traction. But Ripple’s Head of DeFi Michael Zochowski anticipated that many of the early DeFi projects would “fizzle out” or get acquired but says DEXs and wrapped assets will gain momentum.
He even sees Ethereum losing ground as “at least 25% of the value deployed in DeFi by the end of 2021 will be on networks other than Ethereum.”
Here, he sees the XRPL ecosystem, such as Flare and XRPL Transaction Hooks, to “extend its leadership role in DeFi.”
“We’re expecting the asset tokenization trend to accelerate on XRPL, particularly stablecoin issuance, with multiple production deployments in corporate products built on new and improved tooling,” said Zochowski.
Ripple’s other predictions for this year include greater evolution of cryptocurrencies, stablecoins, CBDCs, and crypto making good on its original promise to make finance more accessible for the world’s underserved.
Ripple didn’t disappoint and took a jab at Bitcoin this time as well by predicting that this year crypto is going beyond Proof-of-Work, a consensus mechanism Bitcoin is based on because “PoW systems consume a lot of resources and energy.”
“They also feature an inevitable bend towards centralization over time as the miners with the cheapest power become key stakeholders,” said Ripple CTO David Schwartz calling Ethereum’s beacon Chain launch a turning point.
“2021 will see technical innovations continue to improve blockchains like XRPL that use newer technologies,” he added.