Which custodian launched wXRP on OP?
Hex Trust is the regulated custodian behind the launch of wXRP on Optimism (OP). They issue the wrapped XRP token, which is fully backed 1:1 by native XRP, allowing it to be used across multiple blockchain networks, according to a media report.
- wXRP is issued and held by Hex Trust, a licensed institutional custodian, as confirmed here.
- The token is available on Ethereum, Solana, Optimism, and HyperEVM, with an initial liquidity pool of $100 million to support trading, as reported here.
- This is a 1:1 backed wrapped token designed to extend XRP’s use in decentralized finance (DeFi) applications, with more details available here.
Deep Dive
1. Who Launched It
Hex Trust acts as both the issuer and custodian of wXRP. They provide a regulated way for XRP to be used on blockchains other than its native network, including Optimism. This was confirmed in coverage naming Hex Trust as the entity managing the launch and custody process in this report.
What this means: When you use wXRP on Optimism, the value is backed by actual XRP held securely by Hex Trust. You can redeem wXRP for native XRP through them.
2. Where and With What Liquidity
wXRP launched on four blockchains: Ethereum, Solana, Optimism, and HyperEVM. It started with about $100 million in liquidity to ensure there’s enough supply for smooth trading and to reduce price swings from the start, as noted in a launch article. More blockchain integrations are planned over time, according to the overview.
What this means: Having strong early liquidity helps make trading wXRP on Optimism more efficient, but it’s important to monitor where trading volume actually happens.
3. How It Works and Risks
wXRP operates as a 1:1 custodial wrapped token. This means Hex Trust holds the real XRP tokens and issues wXRP tokens on other blockchains when users deposit XRP. When users redeem wXRP, Hex Trust burns the wrapped tokens and releases the original XRP. This setup is designed to be compliant and secure for cross-chain DeFi use, as explained here. However, like all wrapped tokens, there are risks related to custody and bridging assets between blockchains, even with audits and safeguards in place more context.
What this means: While wXRP expands how you can use XRP in DeFi, you should be aware of risks involving the custodian and smart contracts. Always double-check contract addresses and custody information before making large transactions.
Conclusion
Hex Trust has launched and manages wXRP on Optimism, enabling XRP liquidity to flow into Optimism’s DeFi ecosystem through a fully backed wrapped token. The large initial liquidity pool supports smooth adoption, but because the token relies on a custodian, users should weigh the benefits against potential custody and bridge risks.
What could affect the price of OP?
Optimism is navigating a challenging mix of growth opportunities and market pressures.
- Superchain Upgrades – New interoperability features planned for 2026 could encourage more users and developers.
- Stablecoin Integration – Adding Ripple’s RLUSD stablecoin might boost network use, but upcoming token unlocks could cause short-term selling.
- Market Conditions – Overall crypto market fear and Bitcoin’s dominance are limiting Optimism’s price gains.
Deep Dive
1. Superchain Development (Mixed Impact)
Overview: Optimism is working on a major upgrade called the Interop Layer, expected in 2026, which will connect different Layer 2 blockchains to communicate more easily. Recently, Upgrade 16 increased the network’s capacity by raising gas limits to 500 million per block. Despite these improvements, the total value locked (TVL) on Optimism has fallen to $301 million, down 68% from its peak in 2024.
What this means: These technical upgrades could attract developers and users over time, but the current price of OP tokens, down 90% from their all-time high, shows that investors are cautious about short-term growth compared to competitors like Base.
2. Stablecoin Partnerships vs Token Unlocks (Bullish/Bearish)
Overview: Ripple’s RLUSD stablecoin is launching on Optimism, which could increase decentralized finance (DeFi) activity and network usage. However, on December 31, 31.34 million OP tokens worth about $8.7 million will become available for trading, which often leads to selling pressure.
What this means: While RLUSD could help increase transaction fees and network utility, past token unlocks have typically caused price drops between 7% and 12%, with one instance in July 2025 seeing a 15% decline after an unlock.
3. Market Sentiment & BTC Dominance (Bearish)
Overview: The crypto fear index is currently low at 25, indicating high fear among investors. Bitcoin holds 59% of the total crypto market dominance, which tends to limit gains for alternative coins like Optimism. Additionally, 78% of OP futures contracts are bets that the price will fall.
What this means: Until broader market conditions improve—possibly with Federal Reserve interest rate cuts expected in early 2026—Optimism’s low trading volume (turnover ratio of 0.17) suggests it may struggle to sustain price rallies.
Conclusion
Optimism’s upcoming technical upgrades and the addition of RLUSD stablecoin offer promising growth opportunities. However, short-term challenges like token unlocks and a cautious crypto market create resistance. Watch the $0.28 price level closely—if it falls below this support, the next target could be the 2025 low of $0.23.
Can Optimism’s ecosystem growth overcome the current risk-averse environment for altcoins?
What are people saying about OP?
The Optimism (OP) community is showing signs of steady confidence, especially among large investors who are making long-term bets. Here’s what’s happening:
- Big investors (whales) are buying more OP tokens even though the price has dropped, expecting improvements from upcoming Ethereum upgrades.
- The OP Stack technology is being widely adopted, but the token price hasn’t caught up with this growth yet.
- Optimism’s treasury is using its Ethereum holdings to support decentralized finance (DeFi) activities on the OP Mainnet, aiming to increase liquidity.
Deep Dive
1. @Nicat_eth: OP price dips, but whales remain optimistic
“$OP has fallen 27% since November, but whales continue to buy. Ethereum’s Fusaka upgrade in December could reduce Layer 2 fees by 40%, which is good news for OP chains.”
– @Nicat_eth (7.5K followers · 8.3M impressions · 2025-12-02 14:19 UTC)
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What this means: While the price is currently down, large investors believe that Ethereum’s upcoming upgrades will lower transaction costs and increase the usefulness of OP, which could help the token’s value in the future.
2. @EdgenTech: OP Stack adoption grows despite price stagnation
“OP is trading around $0.30, but the OP Stack powers platforms like Base and Zora, handling 70% of Ethereum’s Layer 2 activity. Revenue is still early, but adoption is expanding.”
– @boy_mi89 (2.3K followers · 1.2M impressions · 2025-11-25 09:37 UTC)
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What this means: The growing use of OP Stack technology shows strong ecosystem development. Although the token price hasn’t risen yet, this adoption could lead to increased demand and value over time as revenue streams develop.
3. @Optimism: Treasury ETH to support DeFi liquidity
“The treasury holds 21,500 ETH, which will be used to fund projects aimed at increasing liquidity on the OP Mainnet, strengthening DeFi services and encouraging user participation.”
– @Optimism (Official account · 2025-10-29 19:37 UTC)
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What this means: Using treasury funds to boost DeFi liquidity is a positive move that could attract more capital and help stabilize the OP ecosystem, especially during uncertain market conditions.
Conclusion
The outlook for Optimism is mixed. While the token price has been weak, the ecosystem is growing, and strategic moves like treasury investments and Ethereum’s Fusaka upgrade could improve OP’s prospects. Keep an eye on the December 2025 upgrade, as lower fees could renew interest in OP. Despite current price support around $0.28 being uncertain, whale buying and expanding Layer 2 adoption suggest a potential foundation for recovery.
What is the latest news about OP?
Optimism is navigating a challenging market by integrating stablecoins strategically and showing steady network growth. Here are the latest highlights:
- RLUSD Stablecoin Testing Expands (December 16, 2025) – Ripple is expanding RLUSD testing to Optimism, aiming to boost cross-chain decentralized finance (DeFi) and attract institutional users.
- Onchain Metrics Defy Industry Slowdown (December 16, 2025) – Unlike some competitors, OP and Base are growing in users and transactions despite a general slowdown in Layer 2 networks.
- Regulatory Progress for RLUSD (December 16, 2025) – Dubai and Abu Dhabi regulators have approved Ripple’s stablecoin, enhancing Optimism’s appeal for compliant financial activities.
Deep Dive
1. RLUSD Stablecoin Testing Expands (December 16, 2025)
Overview:
Ripple is testing its regulated stablecoin, RLUSD, on Optimism and other Layer 2 networks using Wormhole’s interoperability technology. This move is designed to make RLUSD a reliable “cash leg” for cross-chain swaps, payments, and institutional settlements.
What this means:
This is a positive development for Optimism because it aligns with Ripple’s plan to deploy RLUSD where demand for wrapped XRP (wXRP) is strong. This could increase liquidity and DeFi activity on Optimism. However, the success of this initiative depends on how widely RLUSD is adopted and Ripple’s ability to secure full regulatory approvals.
(Source: Ripple News Today)
2. Onchain Metrics Defy Industry Slowdown (December 16, 2025)
Overview:
While networks like Ronin and ZKsync experienced a 70-90% drop in activity during 2025, Optimism and Base have seen growth in both users and transactions. This growth is partly driven by memecoins and AI-based applications.
What this means:
Optimism’s ability to maintain growth shows its ecosystem is more than just hype from token giveaways. However, competition with Base—which does not have its own token—could impact Optimism’s market value if users shift platforms.
(Source: Cointelegraph)
3. Regulatory Progress for RLUSD (December 16, 2025)
Overview:
RLUSD has received regulatory approval from authorities in Dubai and Abu Dhabi, adding to its existing New York Department of Financial Services (NYDFS) trust charter. Ripple has also applied for a U.S. Office of the Comptroller of the Currency (OCC) charter, aiming for oversight at both federal and state levels.
What this means:
This regulatory recognition could attract institutional investors to Optimism for compliant stablecoin transactions. However, delays in regulatory reviews or changes in policy could slow down RLUSD’s full launch.
(Source: Crypto News Land)
Conclusion
Optimism’s partnership with Ripple’s cross-chain stablecoin strategy and recent regulatory progress position it as a promising platform for compliant DeFi activities. Still, competition and broader market conditions pose challenges. With RLUSD’s success depending on regulatory approvals, the question remains: will Optimism see significant institutional investment in early 2026?
What is expected in the development of OP?
Optimism’s roadmap is designed to make Ethereum faster and more efficient while giving the community a bigger say in decisions. Key updates include technical improvements and new ways to support projects with OP tokens.
- Superchain Upgrade 16a (Oct 2025) – Improves how different OP Stack chains work together and increases transaction capacity.
- Season 8 Governance (Aug 2025) – Changes how voting works by involving more groups and speeding up proposal approvals.
- RetroPGF Round 3 (Q1 2026) – Distributes OP tokens to fund projects that benefit the ecosystem.
- Interop Layer (2026) – Enables easier communication and security sharing between chains.
Deep Dive
1. Superchain Upgrade 16a (Oct 2025)
What it is:
This upgrade, tested in September 2025, makes OP Stack chains more compatible with each other by introducing new contract standards and increasing the gas limit (the amount of work the network can handle) from 200 million to 500 million. It also cleans up old code to make the system more efficient. This sets the stage for the Interop Layer coming in 2026, which will connect different chains more securely and smoothly.
Why it matters:
This is a positive step for Optimism’s usefulness, helping it become a key platform for businesses and other Layer 2 chains built on Ethereum. However, there’s a risk that some partners, like Base, might take longer to adopt these changes.
2. Season 8 Governance (Aug 2025)
What it is:
Optimism is changing how decisions are made by creating four groups of stakeholders: token holders, users, apps, and chains. They’re also introducing an “optimistic approval” system where proposals automatically pass unless someone objects. Citizenship categories are expanded and verified on-chain, making governance more inclusive (Optimism Governance Forum).
Why it matters:
This could make governance more decentralized and fair by reducing the influence of large token holders. On the downside, it might slow down decision-making, and if key stakeholders block important proposals, it could hurt progress in the short term.
3. RetroPGF Round 3 (Q1 2026)
What it is:
Following previous rounds that allocated 10 million OP tokens to support public goods, this round will focus on funding projects with clear, measurable goals (“Missions”). The goal is to encourage growth and innovation within the Optimism ecosystem.
Why it matters:
This is good news for developers and the community, as it promotes long-term growth. But if funds aren’t distributed transparently or don’t lead to meaningful results, it could weaken the value of OP tokens.
4. Interop Layer (2026)
What it is:
Scheduled for early 2026, this upgrade will allow different OP Stack chains to communicate directly, share fees, and simplify moving assets between them. It builds on previous upgrades that made Optimism more like Ethereum itself, aiming to reduce fragmentation.
Why it matters:
If delivered on time, this will improve the user experience and attract more developers. However, delays or security issues could pose challenges.
Conclusion
Optimism’s roadmap combines technical improvements with community-focused governance and funding. These upgrades could strengthen its position as a leading Ethereum Layer 2 solution, but success depends on smooth coordination among stakeholders and flawless execution. How will RetroPGF 3’s results impact OP’s value in 2026?
What updates are there in the OP code base?
Optimism’s latest updates focus on making it easier and safer for different blockchains to work together and handle more transactions efficiently.
- Superchain Protocol Upgrades (June 20, 2025) – Expanded bug bounty program to review upgrades and improve security for cross-chain communication.
- CCTP V2 Integration (June 13, 2025) – Enables almost instant USDC transfers across multiple blockchains using Circle’s cross-chain system.
- Span Batches Launch (June 11, 2025) – Cuts data costs on Ethereum’s main network by 90% for chains built with OP Stack.
Deep Dive
1. Superchain Protocol Upgrades (June 20, 2025)
What’s happening: Optimism increased its $2 million bug bounty program to carefully check new upgrades to its Superchain system before they go live. This helps catch bugs and security issues early, especially for cross-chain features.
The upgrade includes new smart contracts designed for cross-chain use and increases the gas limit (the amount of computational work allowed) from 200 million to 500 million. This means the system can handle more complex transactions between blockchains.
Why it matters: This reduces the risk of problems during upgrades and prepares the Superchain ecosystem—which includes projects like Base and Zora—for smoother communication between chains. Users will enjoy safer and more capable transactions.
(Source)
2. CCTP V2 Integration (June 13, 2025)
What’s happening: Circle’s Cross-Chain Transfer Protocol version 2 (CCTP V2) launched on Optimism’s main network. This allows USDC stablecoins to move instantly and at a 1:1 rate between Optimism, Ethereum, and other supported blockchains.
The upgrade adds “transaction hooks,” which let developers automate actions right after a transfer, like swapping tokens or activating smart contracts, without needing middlemen. Unlike other bridges that rely on liquidity pools, CCTP uses a burn-and-mint system backed by Circle’s reserves, improving security.
Why it matters: This makes decentralized finance (DeFi) apps easier to build across blockchains and reduces risks associated with moving funds between chains. Users benefit from faster, cheaper stablecoin transfers, increasing Optimism’s usefulness for cross-chain applications.
(Source)
3. Span Batches Launch (June 11, 2025)
What’s happening: Optimism introduced Span Batches, a new way to compress transaction data. It groups multiple batches of transactions into one post on Ethereum’s main network, cutting storage costs by 90%.
This is especially important for OP Stack chains like Base and Mode that share Ethereum’s data layer. By reducing duplicate data, it lowers fees while keeping the same security level as Ethereum.
Why it matters: This makes running an OP Stack blockchain cheaper and more sustainable. Projects built on OP Stack can pass these savings to users, making them more competitive compared to other Layer 2 solutions.
(Source)
Conclusion
Optimism is advancing its technology to support scalable, secure cross-chain interactions. With thorough security checks, efficient data handling, and fast stablecoin transfers, OP Stack is positioning itself as a leader in modular blockchain technology. The question remains: will Superchain’s ability to connect multiple blockchains speed up adoption beyond just Ethereum?
Why did the price of OP fall?
Optimism (OP) dropped 6.96% in the last 24 hours, falling more than the overall crypto market, which declined by 2.47%. This drop matches negative technical signals and challenges specific to the sector, even though Ripple has expanded its RLUSD stablecoin to the OP network.
- Market-Wide Risk Aversion – The Crypto Fear & Greed Index is at 25, indicating "Extreme Fear," which pushed investors toward safer assets.
- Technical Breakdown – OP fell below key support levels between $0.303 and $0.322, triggering automatic sell orders.
- Stablecoin Expansion Doesn’t Mean Immediate Demand – Ripple’s RLUSD testing on OP hasn’t yet offset the trend of investors moving away from some Layer-2 tokens.
Deep Dive
1. Market-Wide Risk Aversion (Negative Impact)
Overview:
The total cryptocurrency market value dropped 2.47% to $2.9 trillion. Altcoins (cryptocurrencies other than Bitcoin) performed worse, while Bitcoin’s market share increased slightly to 59.13%. Fear-driven sell-offs led to $154.91 million in Bitcoin liquidations alone, according to derivatives data.
What this means:
As a more volatile altcoin, OP experienced stronger selling pressure during this market-wide risk-off period. The "Extreme Fear" reading on the Fear & Greed Index shows that traders are focusing on protecting their money rather than taking risks on tokens like OP.
What to watch:
Bitcoin’s price around $112,600 is critical. If it falls below this level, altcoins like OP could continue to weaken.
2. Technical Breakdown (Negative Impact)
Overview:
OP’s price dropped below its 7-day and 30-day moving averages ($0.307 and $0.322 respectively). The Relative Strength Index (RSI) at 39.6 indicates bearish momentum, and the MACD indicator confirms accelerating downward movement.
What this means:
When OP failed to hold the support zone between $0.303 and $0.322 (important Fibonacci retracement levels), many traders sold their positions. This triggered automatic sell orders, making the price fall even faster.
Key level to watch:
If OP closes below $0.278 (its lowest price this year), it might retest its all-time lows near $0.10.
3. Layer-2 Rotation Pressures (Mixed Impact)
Overview:
Ripple’s RLUSD stablecoin is now being tested on OP’s network. However, data from Nansen shows that other Layer-2 networks like Base are attracting more investment, with Base’s total value locked (TVL) up 12%, while OP’s TVL remains flat.
What this means:
Although RLUSD’s presence is a positive long-term sign for OP’s decentralized finance (DeFi) ecosystem, it hasn’t yet stopped investors from shifting their focus to newer Layer-2 solutions. Traders are factoring in OP’s poor performance over the past 90 days (-67.23%).
Conclusion
OP’s recent price drop is due to broader market risk aversion, technical weaknesses, and slow ecosystem growth despite Ripple’s integration of RLUSD. While the stablecoin could help OP’s utility in the future, traders are waiting for clear signs of growth on the network.
Key watch:
Will OP hold above its 2025 low of $0.278, or will large investors increase selling pressure? Keep an eye on OP/USDT order books for signs of buying interest near $0.27.