Ripple is currently working on the development of a sidechain on the XRP Ledger (XRPL). The analyst nicknamed Guy recently talked about this sidechain compatible with Ethereum. He explained to his 2.16 million YouTube subscribers how Ripple’s project could impact the price of XRP.
Ethereum Virtual Machine (EVM) Will Power XRP
Earlier this month, it became known that blockchain development company Peersyst Technology is working on a sidechain for XRPL. The layer 2 network will be compatible with the Ethereum virtual machine (EVM). Recently, the crypto analyst known as Guy has job a video on the Coin Bureau YouTube channel. In the latter, he has Explain that the development of a sidechaining on the XRP Ledger (XRPL) would benefit XRP. According to him, the sidechain compatible with Ethereum could lead to a rise in the price of XRP.
The crypto analyst said that in the past, EVM support has powered many Ethereum competitors. As examples, he cited the Harmony and Fantom blockchains. He added that ” the fact that XRP has an EVM sidechain could therefore be very bullish for XRP“. However, he clarified that everything will depend on the speed of the EVM sidechain.
“Ripple will have a lot of work to do”according to analyst Guy
Guy believes that the Ethereum virtual machine is “inherently limitedin terms of speed. Indeed, the EVM only processes a few hundred transactions per second (TPS). So, the crypto analyst states that “Ripple will have a lot of work to do to improve its TPS“. However, Guy does not believe that the EVM TPS issue will hold Ripple back from his plans.
“This shouldn’t be too hard to do, given that Avalanche, Near Protocol’s Aurora layer, and Solana’s upcoming Neon layer all use EVM and can process thousands of transactions per second.“, he said.
According to crypto analyst nicknamed Guy, XRP has only one advantage over other cryptos: its massive community of holders of itstokens. At the same time, the analyst believes that Ripple’s crypto has a significant downside. The latter is that the SEC considers XRP a security. Even so, Guy is of the opinion that the sixth-largest crypto by market capitalization will get to see a massive upside.
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