Here is Why XRP Could Win the DeFi Race Against Ethereum and Solana

By: bitcoin ethereum news|2025/05/12 17:30:10
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A famous XRP community member suggests that XRP Ledger is capable of outpacing Ethereum and Solana in the decentralized finance (DeFi) sector. In a lengthy thread on X, All Things XRP detailed why XRP could potentially win the DeFi race against Ethereum and Solana. For context, Ethereum and Solana have long been the top blockchains for decentralized finance, and many DeFi protocols have launched on both networks. Why XRP Could Outpace Ethereum and Solana in DeFi However, All Things XRP suggested that this might soon change due to both networks’ inherent problems. In particular, the community figure noted that Ethereum is too expensive, as transactions cost around $20 to $70. On the other hand, the XRP proponent noted that while Solana is fast and cheap, it has been plagued by network outages and centralization fears over the years. DeFi’s Dark Horse Interestingly, the X thread referred to XRPL as ‘DeFi’s next dark horse,’ emphasizing that the network is entering the sector with real momentum. The community figure mentioned some capabilities associated with XRPL, particularly its ability to settle transactions within seconds at a negligible fee. ️ ETHEREUM’S TOO EXPENSIVE. SOLANA’S TOO UNSTABLE. But XRP might be DeFi’s next dark horse. Let me explain why XRPL could win this race. pic.twitter.com/e9cNmDQUGV — All Things XRP (@XRP_investing) May 10, 2025 Hooks Functionality Further, “All Things XRP” indicated that the upcoming XRPL Hooks–designed to introduce smart contract capabilities–would also enhance the network’s DeFi performance. They noted that, unlike traditional smart contracts, XRPL Hooks aim to offer lightweight programmable transactions. Per the thread, some of Hooks’ benefits include simplicity and efficiency, which All Things XRP believes are suitable for DeFi operations. The community figure believes the upcoming XRPL Hooks would enable users to run decentralized lending and automated payments and yield farming faster and cheaper on the network. Real-World Traction Even without Hooks, XRPL is already gaining real-world traction. For example, CryptoTradingFund has successfully processed $2.23 million in transactions during its beta phase. Notably, major e-commerce companies like Amazon and Walmart are reportedly among its vendors. Institutional Power Moreover, the post notes that XRPL has strong institutional backing and is heavily backed by banks. It also suggests that initiatives like RLUSD stablecoin and upcoming XRP ETFs would help to bridge the realms of decentralized and traditional finance. XRPL’s Favorable Regulation In addition, the expert indicated that XRPL’s native token, XRP, has received favorable regulatory treatment in the UAE and EU compared to Ethereum. The community figure believes this regulatory edge boosts XRPL’s DeFi prospects globally. Speed and Reliability are Everything The expert dismissed claims that XRPL is less decentralized than Ethereum and Solana, stating that its consensus model offers the speed and reliability essential to DeFi users. Finally, All Things XRP concluded that XRPL can win the DeFi race by dominating niches where transaction speed and cost are critical, rather than by trying to replicate Ethereum or Solana. DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses. Source: https://thecryptobasic.com/2025/05/12/here-is-why-xrp-could-win-the-defi-race-against-ethereum-and-solana/?utm_source=rss&utm_medium=rss&utm_campaign=here-is-why-xrp-could-win-the-defi-race-against-ethereum-and-solana

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