Journalist
Published:
DeFi liquidity is becoming increasingly important as more layer 1 networks move toward widespread adoption. Notably, recent developments around Ripple (XRP) directly target this space.
Hex Trust, a digital asset solutions company, is launching a wrapped version of XRP, called wXRP, extending the token’s reach in the DeFi ecosystem. Simply put, XRP liquidity is no longer limited to Ripple-led rails.
Instead, the company selected Solana (SOL) as the channel for wXRP, making it a classic cross-chain move. Indeed, XRP’s DeFi use case is moving from its native L1 to Solana, allowing it to leverage deeper on-chain activity.
Source: DeFiLlama
Data from DeFiLlama supports this decision, strengthening Solana’s infrastructure.
For example, Solana’s 24-hour DEX volume stood at $3.9 billion at press time. That’s about 575 times higher than XRPL’s $6.78 million. Therefore, moving wXRP to Solana increases its on-chain liquidity, making it much more usable for traders.
That said, while this move showcases Solana’s on-chain strength, it also raises questions about the limitations of XRPL. Simply put, does the launch of wXRP highlight XRPL’s relative weakness in supporting DeFi activity?
wXRP Launch Gives XRP a Strategic Advantage in DeFi
Ripple is making 2025 its year to promote mainstream adoption.
Primarily, by targeting the payments market, Ripple’s native token has become more liquid. But the impact on the chain remains limited. The total value locked (TVL) on XRPL stood at just $69 million, at the time of writing, falling back to June levels.
Other measurements show a similar trend. Despite RLUSD, the total stablecoin market cap on XRPL is only $343 million. For comparison, Solana’s TVL was $17 billion, a clear indication that L1 currently offers much greater liquidity.
Source: DeFiLlama
In this context, the launch of wXRP by Hex Trust appears to be a smart strategic pivot.
With the growing financial adoption of Ripple, institutional demand for XRP is increasing, supported by ETF inflows. Faced with this setup, wXRP acts as a bridge, allowing traders and institutions to more easily access XRP liquidity.
However, by launching on Solana, the token leverages deeper liquidity, giving it a clear advantage in the DeFi ecosystem, positioning it to interact with a wider range of protocols and support larger on-chain flows.
Final Thoughts
- Hex Trust’s launch of wXRP moves XRP liquidity from its native L1 to Solana, significantly improving on-chain activity.
- Solana’s 24H DEX volume is approximately 575 times that of XRPL, providing wXRP with greater liquidity and broader protocol integration opportunities.
