Ripple’s “Ethereum-Like” Roadmap: Smart Contracts, Lending, and Legal Clarity

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Ripple is making bold moves that mirror the very strategies that once propelled Ethereum to new heights. While XRP struggled in Q2—down nearly 30% against the dollar despite a surge in high-beta asset inflows—Ethereum surged over 100% following its strong Q1 performance. Yet, Ripple’s recent trajectory isn’t random. It’s a calculated, strategic evolution aimed at transforming XRP from a digital payment rail into a fully-fledged institutional-grade blockchain platform.

Just as Ethereum developers reignited momentum with the Pectra upgrade in early May—sparking a 40% rebound and pulling ETH out of its post-November slump—Ripple now appears to be following a similar playbook. The critical question: will the market reward XRP’s roadmap as it did with ETH?

The Institutional Push Behind XRPL’s Evolution

Ripple’s vision for the XRP Ledger (XRPL) has shifted dramatically. No longer just a fast settlement layer for cross-border payments, XRPL is being repositioned as a scalable, programmable blockchain ecosystem ready for institutional adoption.

A major catalyst came earlier this year when Ripple acquired Hidden Road, a prominent institutional brokerage, for $1.25 billion. This acquisition wasn’t just about expanding services—it was a signal. Hidden Road specializes in facilitating large-scale capital transactions with minimal market impact, giving institutional investors better tools to trade and deploy capital using XRP.

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But Ripple isn’t stopping there. The company has outlined an ambitious technical roadmap set to unfold through 2025 and beyond. Key highlights include:

Together, these upgrades position XRPL not just as a competitor to Ethereum, but as a purpose-built alternative for regulated financial institutions seeking speed, compliance, and low-cost settlement.

Legal Clarity Meets Technical Ambition

Timing is everything—and Ripple may have finally caught a break on the regulatory front. After years of legal uncertainty due to the SEC lawsuit, Ripple officially withdrew its appeal in early 2025, signaling a willingness to cooperate and paving the way for clearer regulatory guidelines.

This move coincides perfectly with growing speculation around a potential XRP ETF. While no formal filings have been confirmed, the withdrawal of the appeal has reignited market optimism. Combined with the technical upgrades, this dual push—legal resolution and technological expansion—creates a powerful narrative: XRP is transitioning from a speculative asset to a foundational layer for institutional blockchain finance.

Market sentiment reflects this shift. At the time of writing, XRP has broken above $2.15, rising 5% in 24 hours. More telling is the 3% increase in open interest (OI) across derivatives markets—an indicator that speculative liquidity is returning, particularly in futures and perpetual contracts.

Yet, speculation alone won’t sustain long-term growth. For XRP to truly reprice like Ethereum did post-upgrade, it needs one thing: institutional capital inflow.

XRP vs. ETH: A Tale of Capital Rotation

The XRP/ETH ratio offers valuable insight into shifting investor priorities.

From November 13 onward, the ratio surged 550% over five months—mirroring XRP’s rally from $0.70 to nearly $3.40 by mid-January. Even as XRP pulled back 35% from its peak, the ratio held strong, indicating sustained relative strength compared to ETH.

During this period, Ethereum languished near multi-year lows of $1,440 amid declining network activity and reduced developer momentum. Stablecoin velocity slowed, and fee revenue dipped—signs of waning short-term interest.

But everything changed in May.

The deployment of Ethereum’s Pectra upgrade acted as a catalyst, pushing ETH past $2,000 and triggering a wave of renewed institutional interest. Annualized fee revenue soared past $7.3 billion, BlackRock increased its staking positions, and stablecoin transaction volume spiked—clear evidence of capital rotating back into Ethereum.

Consequently, the XRP/ETH ratio collapsed nearly 40%, dropping to 0.0008—a sharp divergence signaling investor preference shifting back toward Ethereum.

This reversal underscores a crucial point: technology upgrades drive narrative, but capital follows utility and ecosystem maturity.

Ripple’s “Ethereum-like” roadmap is promising—but unless it translates into real-world adoption by banks, asset managers, and fintech platforms, it risks being seen as reactive rather than revolutionary.

Can XRPL Build an Ecosystem That Lasts?

Ethereum’s success wasn’t built overnight. It took years of developer activity, community support, and continuous upgrades to establish its dominance in DeFi, NFTs, and enterprise blockchain use cases.

For XRPL to compete, it must do more than copy Ethereum’s features—it must differentiate.

Its advantages are clear:

These make XRPL uniquely suited for real-time payments, remittances, and regulated financial products—areas where Ethereum’s congestion and high gas fees remain pain points.

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Now, with smart contracts and lending protocols on the horizon, XRPL could become the go-to platform for tokenized assets, programmable money, and cross-border banking solutions.

But adoption hinges on developer engagement. Ripple must incentivize builders through grants, hackathons, and enterprise partnerships—just as Ethereum Foundation did in its early days.

Frequently Asked Questions

Q: Is XRP becoming another Ethereum?
A: Not exactly. While XRP is adopting features like smart contracts and DeFi protocols, its focus remains on fast, compliant transactions for institutions—not general-purpose dApps or consumer crypto apps.

Q: What is the significance of the Hidden Road acquisition?
A: It gives Ripple direct access to institutional trading infrastructure, allowing large investors to use XRP for capital movements with minimal slippage—key for ETFs or large-scale adoption.

Q: When will smart contracts launch on XRPL?
A: Full smart contract functionality is expected by late 2025, following phased rollouts starting mid-year.

Q: Could an XRP ETF be approved?
A: With Ripple withdrawing its SEC appeal and moving toward regulatory cooperation, chances have improved—but no official filing has been made yet.

Q: How does XRPL compare to Ethereum in terms of speed and cost?
A: XRPL settles transactions in under 5 seconds at less than $0.01 each; Ethereum averages 12 seconds and variable fees often exceeding $1–$5 during peak times.

Q: Will XRP outperform ETH in 2025?
A: That depends on adoption. If institutions embrace XRPL’s upgrades and ETF speculation heats up, yes—but ETH still leads in ecosystem depth and developer activity.

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Final Outlook: A Strategic Pivot with Real Potential

Ripple’s new roadmap is more than just technical upgrades—it’s a strategic pivot toward becoming a core infrastructure layer for global finance. By combining regulatory progress with smart contracts, lending protocols, and institutional tools, Ripple is positioning XRP as a serious contender in the next phase of blockchain evolution.

The parallels with Ethereum are undeniable. But history doesn’t repeat—it evolves. For XRP to rise like ETH did, it needs more than hype: it needs real adoption, developer momentum, and trust from Wall Street.

If it delivers, 2025 could mark not just a comeback—but a transformation.