Flare Network Launches FXRP: Can DeFi Boost XRP Price?

The cryptocurrency community is abuzz as Flare Network officially launches FXRP, a wrapped version of XRP designed for decentralized finance (DeFi).

FXRP marks the first live deployment of Flare’s FAssets protocol, converting non-smart-contract tokens like XRP into over-collateralized, DeFi-ready assets.

This new development opens doors for XRP holders to participate in lending, liquidity provision, and eventually staking, directly on Flare’s network. As investors watch closely, many are asking: will this move help boost XRP price in October 2025 and beyond?

The launch is capped initially at 5 million FXRP for the first week, with gradual increases planned to manage risk and encourage organic liquidity growth.

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Key Takeaways

1. FXRP Enables DeFi: XRP can now be used in lending, liquidity pools, and future staking on Flare.

2. Controlled Launch: Initial minting is capped at 5 million FXRP to manage supply and volatility.

3. Price Impact Potential: On-chain activity and whale interest could drive XRP toward higher levels in October.

FXRP and the FAssets System

Flare’s FAssets protocol turns XRP into FXRP, a one-to-one representation compatible with DeFi platforms.

How FXRP Works

• Users deposit XRP into the FAssets system, backed by collateral and independent agents.

• FXRP can be minted and redeemed at any time on Flare’s mainnet.

• It allows participation in lending, liquidity pools, and other DeFi protocols without relying on custodial services.

This non-custodial approach ensures that XRP holders retain control while interacting with smart contracts.

Flare also leverages its data protocols, including the Flare Time Series Oracle (FTSO) and Flare Data Connector (FDC), to provide real-time pricing and verification.

Security has been prioritized with audits by Zellic and Coinspect, bug bounty programs, and ongoing monitoring by Hypernative.

With FXRP, XRP can finally enter DeFi on a significant scale, potentially increasing demand and trading activity for the token.

Read Also: XRP Improves FAssets Flare, XRP Real Steps Into DeFi

XRP Price Analysis and Technical Setup

XRP’s price has been testing key support levels around $2.80, recovering after a dip below $2.75. This retest indicates strong buyer interest and sets the stage for a potential trend reversal.

Key Levels to Watch

• Support: $2.80 to $2.90

• Immediate Resistance: $3.20 to $3.30

• Major Resistance: $3.60 to $3.80

Technical indicators, including a classic “retest and pump” pattern, suggest that if XRP maintains the $2.80 floor, it could target higher resistance zones.

Whale accumulation on recent dips adds confidence that larger holders are preparing for upside potential, reducing sell pressure and creating a stable price base.

On-chain data supports this bullish outlook. Addresses holding between 1 million and 10 million XRP have increased their holdings, suggesting confidence in the token’s short-term trajectory.

Read Also: XRP Earn on Bitrue: Gain Rewards as Price Shifts

DeFi Integration and FXRP Incentives

Flare’s FXRP isn’t just a wrapped token; it comes with incentives designed to attract liquidity and participation.

Incentive Highlights

• Liquidity Pools: FXRP/USDT pools on SparkDEX, BlazeSwap, and Enosys target up to 50% APR.

• Collateralized Borrowing: Users can deploy FXRP to earn interest through lending markets.

• rFLR Rewards: Flare’s native reward token distributed to encourage active participation.

These incentives may encourage traders to convert XRP into FXRP and engage in DeFi activities, increasing on-chain volume and liquidity.

The capped launch strategy ensures that demand and supply remain balanced, while the growing DeFi ecosystem provides new opportunities for users to earn yields on their holdings.

As more participants mint FXRP and utilize Flare’s protocols, XRP price could see upward momentum in October, assuming adoption continues steadily.

Read Also: XRP Prediction: Ripple (XRP) Price Forecasts for 2025-2050

Conclusion

Flare Network’s FXRP launch marks a pivotal moment for XRP, unlocking the potential of decentralized finance for a token that previously had limited DeFi utility.

By turning XRP into a non-custodial, over-collateralized asset, Flare enables holders to participate in lending, liquidity provision, and soon staking.

Initial supply caps and attractive incentives aim to ensure a smooth launch while attracting liquidity.

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Whether converting XRP into FXRP or trading across other assets, Bitrue can support both short-term strategies and long-term DeFi engagement.

FAQ

What is FXRP?

FXRP is a one-to-one, over-collateralized representation of XRP on the Flare Network, enabling the token to participate in DeFi protocols like lending and liquidity pools.

How can I mint FXRP?

XRP holders deposit their tokens through Flare-supported wallets or DEX portals, such as SparkDEX, BlazeSwap, or Enosys.

Does FXRP pay yield?

FXRP itself does not generate yield directly but can be deployed into lending, liquidity provision, or future staking protocols to earn rewards.

Why is the FXRP supply capped?

The initial cap of 5 million FXRP manages risk, prevents price manipulation, and allows a gradual, controlled introduction into the DeFi ecosystem.

Can XRP price benefit from FXRP adoption?

Yes. Increased FXRP minting and DeFi activity could boost demand for XRP, encouraging higher price levels if the trend continues through October 2025.

Disclaimer: The views expressed belong exclusively to the author and do not reflect the views of this platform. This platform and its affiliates disclaim any responsibility for the accuracy or suitability of the information provided. It is for informational purposes only and not intended as financial or investment advice.