XRP Is Trailing Badly in This 1 Area. Should You Sell It?

Core Insights - XRP is significantly lagging behind competitors like Solana and Ethereum in the decentralized finance (DeFi) space, with a total value locked (TVL) of just over $82 million compared to Ethereum's nearly $83 billion and Solana's close to $11 billion [3] - The recent launch of XRP's Ethereum Virtual Machine (EVM) sidechain has not substantially improved its position in the DeFi market [1][3] - XRP was originally designed for international payments and money transfers, focusing on fast transaction settlement and regulatory compliance rather than building a comprehensive DeFi ecosystem [5][8] Company Overview - XRP serves as a bridge asset for transferring value across different currencies and venues, which is its primary use case today [5] - Ripple, the issuer of XRP, is expanding its offerings to create a fintech stack aimed at institutional investors, which includes the RLUSD stablecoin [6][7] - RLUSD, with a market cap of $898 million, is positioned as a stable and regulated option for banks and fintechs, differentiating XRP from DeFi platforms that require complex regulatory compliance [7][8] Market Position - XRP's low DeFi TVL indicates it is not focused on yield farming, lending services, or staking activities, which are more prevalent on platforms like Ethereum and Solana [8][9] - The emphasis for XRP is on developing features targeted at institutional clients, which is seen as a more critical area for growth compared to traditional DeFi activities [8][9]