Ripple XRPL EVM Struggles with $100,000 TVL, RLUSD Faces Adoption Woes

• Ripple’s XRPL EVM sidechain, launched on June 17, 2024, shows a TVL of just $136,818 and attracts limited developer engagement.
• Ripple’s RLUSD stablecoin is not yet launched and holds 0% of the $162 billion global stablecoin market.

Ripple's much-anticipated XRPL EVM sidechain has struggled to gain meaningful traction since its launch on June 17, 2024. According to reports from Cryptopolitan and Coinlive on August 12, 2024, its total value locked (TVL) was just $136,818, held across two active chains. Daily trading volume was similarly underwhelming at $1,238, with the sidechain’s sole operating decentralized exchange, Moai Finance, handling the majority of this activity.

In addition to low on-chain activity, the XRPL EVM sidechain has attracted limited developer interest. On August 12, 2024, Cryptopolitan reported that only 168 developers were engaging with the platform. This figure stands in stark contrast to Ethereum, which boasts 7,448 active developers, and raises concerns about the scalability and appeal of Ripple's Ethereum-compatible infrastructure.

Ripple’s RLUSD stablecoin faces similar adoption challenges. On August 12, 2024, Coinlive revealed that RLUSD is not yet launched and thus has a market capitalization of $0, representing 0% of the massive $162 billion global stablecoin market. For comparison, dominant players like Tether (USDT) and USD Coin (USDC) command much larger market capitalizations of $112 billion and $33 billion, respectively, underscoring RLUSD's modest market footprint.

These adoption struggles stand in sharp contrast to Ripple's ongoing regulatory battle. The company's long-running legal battle with the U.S. Securities and Exchange Commission (SEC), filed in December 2020, is still ongoing, with a judge deliberating on a final penalty between Ripple’s proposed $10 million and the SEC's requested $2 billion.

Despite this regulatory uncertainty, however, both the XRPL EVM and RLUSD continue to underperform in terms of adoption. This disparity illustrates the significant challenges Ripple faces in securing a competitive position within the broader crypto market. Ultimately, Ripple’s ongoing regulatory battle has not yet translated into substantial growth for these key offerings, which poses critical questions about the company’s long-term strategy.