The Disappointment of XRPL EVM Sidechain: From Ambitious Promises to Dismal Reality

XRPL EVM Sidechain Overview

As of July 14, 2026, the XRPL EVM sidechain, which launched on June 30, 2025, has recorded a total value locked (TVL) of just $25,741. This figure starkly contrasts with the initial projections that estimated an uplift of between $600 million and $12 billion in TVL.

A Promising Start That Faltered

Before its launch, developers were optimistic, citing successful comparisons to Polygon, which had seen substantial TVL growth on Ethereum. However, after one year, the results are disappointing, with the XRPL EVM sidechain having minimal user engagement and capital influx.

Moai Finance, the only protocol to record significant trading on the platform, reported a cumulative volume of $95,008 since inception. The sidechain’s decentralized exchange volume and fees stand at zero for the last 24 hours, emphasizing its lack of traction.

What Went Wrong?

The technical infrastructure of the XRPL EVM sidechain is operational, secure, and functioning as intended. It uses a Cosmos SDK chain with Ethereum Virtual Machine compatibility connected to the XRP Ledger through the Axelar bridge. This setup enables users to deploy smart contracts and utilize decentralized exchanges, yet interest remains extraordinarily low.

Ripple’s efforts to build a functioning DeFi ecosystem on the XRPL were met with unexpected challenges. Despite launching with a range of protocols, including lending and derivatives platforms, many did not materialize. The more the development progressed, the more apparent the absence of user demand became.

Declining Engagement and Activity

In August 2025, two months post-launch, the sidechain had previously hosted three decentralized exchanges with a combined TVL of $100,818. However, by now, that number has stagnated to $25,741 as overall liquidity dwindled. Additionally, the total trading activity has turned negative, with a current indication of fewer users.

Comparisons to Polygon Unwarranted

The comparison made to Polygon’s success has been scrutinized, as XRPL EVM faced unique barriers that did not exist for Polygon. Unlike Polygon, which benefited from Ethereum’s congestion, XRPL did not have a substantial existing user base or demand migrating to its sidechain.

Potential Future Developments

While the sidechain has underperformed, the broader XRP Ledger has seen growth. Tokenized real-world assets on the XRPL surged from under a billion dollars to approximately $3.5 billion within the same timeframe. This reflects a growing interest in the ecosystem, albeit outside the EVM sidechain.

Despite its potential and the prepared infrastructure, the XRPL EVM sidechain exemplifies how critical user demand and engagement are to the success of any blockchain project. While technology may function perfectly, without a ready market or user interest, the resultant value remains minimal.