XRP Has Surpassed $200,000,000,000 FDV. Here’s the Significance

Georgios Vlachos, a math Olympiad gold medalist and a founding team member of Algorand, recently shared insights on a significant development in the XRP Ledger (XRPL) ecosystem.

In a tweet, he highlighted how XRPL’s fully diluted valuation (FDV) has surpassed $200 billion but has remained largely isolated from decentralized finance (DeFi) opportunities. This limitation has hindered adoption, as XRP holders have lacked access to productive use cases.

However, the integration between XRPL and Axelar aims to change this landscape by enabling interoperability and expanding DeFi access for XRP holders. Vlachos emphasized that the partnership between Ripple and Axelar was not formed hastily but was brought by years of technical diligence.

He cited David Schwartz, Ripple’s Chief Technology Officer, stating that his approach to infrastructure development is to “know where the bodies would be buried” in the codebase, reflecting the thorough scrutiny applied before finalizing the integration.

$XRP has surpassed $200,000,000,000 FDV, yet has remained isolated from most DeFi opportunities.

When holders can't put assets to productive use, it harms adoption.
Here's how @axelar is changing this for XRPL pic.twitter.com/1ejXDxkisi

— Georgios Vlachos (@yorgosv_) February 22, 2025

How the XRPL-Axelar Integration Works

Integrating XRPL and Axelar enhances cross-chain functionality, allowing seamless movement of assets and stablecoins while leveraging XRPL’s real-world asset (RWA) platform. Vlachos outlined key benefits of this integration, including:

Seamless stablecoin movements – Facilitating the transfer of stablecoins across multiple blockchain networks.

DeFi access for XRP holders – Enabling XRP holders to participate in lending, borrowing, and yield farming within the broader DeFi ecosystem.

Utilization of XRPL’s RWA platform – Supporting the tokenization of real-world assets on XRPL.

We are on twitter, follow us to connect with us :- @TimesTabloid1

— TimesTabloid (@TimesTabloid1) July 15, 2023

A crucial aspect of this integration is how cross-chain transactions are executed. Vlachos cited the example of Squid Router, which allows users to swap assets on the origin chain, bridge through Axelar, and complete a final swap on the destination chain—all within 20 seconds. This process is designed to be abstracted from users, offering an institutional-grade user experience.

Beyond asset bridging, Axelar also serves as a messaging layer for Web3, similar to how the internet connects computers. According to Vlachos, Axelar’s blockchain network is designed to interconnect other blockchains, making it a foundational infrastructure for scaling crypto to a million chains.

Addressing Consensus and Validator Concerns

Following Vlachos’ announcement, a user named VET raised a technical question regarding Axelar’s validator set and how it achieves consensus with the XRP Ledger. The user noted that Axelar has 75 validators with a 60% threshold (requiring 45 validators for consensus), whereas XRPL accounts have a maximum signer list of 32. Given this constraint, the user questioned how the Axelar network could reliably reach consensus with fewer signer slots available on XRPL.

In response, Vlachos clarified that Axelar has introduced smart contracts, allowing for custom connectivity when integrating with new chains. Specifically for XRPL, the network will initially use a smaller validator set, consisting of approximately 20 validators.

These validators will facilitate message passing between XRPL and Axelar, with messages then being forwarded to other chains, such as Ethereum, through Axelar’s broader 75-validator network. This approach ensures a secure and efficient interoperability model while respecting XRPL’s technical constraints.

The Future of XRPL in Tokenization and DeFi

Vlachos concluded his tweet with a bold prediction: within two years, XRPL will emerge as the leading platform for RWA tokenization, underpinned by secure and programmable interoperability. He envisions XRPL becoming the foundation for transactions involving trillions of dollars, ultimately unlocking new economic opportunities globally.

This perspective aligns with broader industry trends, as financial institutions and blockchain projects increasingly focus on tokenizing real-world assets such as real estate, commodities, and equities. With the XRPL-Axelar integration, XRP holders may soon access a wider range of financial services while contributing to expanding a more interconnected blockchain ecosystem.

Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.

Follow us on X, Facebook, Telegram, and Google News

The post XRP Has Surpassed $200,000,000,000 FDV. Here’s the Significance appeared first on Times Tabloid.