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XRP Utility Set for Breakthrough as Flare Expands On-Chain Use Cases
XRP Still a Speculative Asset? An influential XRP community figure says the token has long remained a speculative asset, with many holders simply waiting for the next major rally. But this dynamic could be shifting as DeFi opportunities begin to take shape beyond the XRP Ledger.
XRPL Still Lacks Smart Contracts and Native Yield
Despite operating for more than 13 years, the XRP Ledger (XRPL) still does not support smart contracts or native staking, largely because it was never designed for such features. As a result, XRP holders cannot stake tokens directly or earn yield on the main network. This leaves XRP with limited on-chain utility outside of payments, reinforcing a speculative narrative.
Several third-party teams have stepped in to address these limitations, and according to community figure Crypto Eri, Flare is among the most important efforts. Eri highlighted this after The Defiant’s Virginia Valenzuela published a sponsored review discussing the renewed institutional interest in XRP in 2025, including conversations around ETF approvals.
XRP’s Limited DeFi Options Highlight a Growing Gap
Valenzuela noted that while XRP has gained momentum this year, most holders still treat it as a speculative asset. The XRPL’s lack of smart-contract support restricts access to DeFi tools available on other blockchains. Estimates place Ripple’s DeFi activity at roughly $83 million, led by platforms such as XRPL DEX, Open Eden, and Doppler Finance.
Flare Expands XRP Utility Through FXRP, USDT0, and Firelight
Attention is now turning to developments outside the XRPL—particularly Flare, which currently secures about $225 million in total value. Flare’s EVM-compatible architecture and data-centric design create new opportunities for XRP holders.
Valenzuela outlined three key innovations:
• USDT0, a chain-agnostic stablecoin built using LayerZero’s Omnichain Fungible Token standard, enabling deeper liquidity and cross-chain movement without traditional bridges.
• FXRP, which brings XRP to Flare as an ERC-20 token while keeping the original asset on the XRPL, unlocking lending markets, DEX trading, and more.
• Staked XRP via the upcoming Firelight mechanism, allowing users to stake XRP and receive a liquid staking asset usable across DeFi platforms.
Together, she said, these components aim to build a more complete DeFi ecosystem for XRP.
Community Response and Future Possibilities
Crypto Eri praised Flare’s efforts, reiterating that XRP has historically been speculative and restricted by XRPL’s technical limitations. She also referenced Ripple CTO David Schwartz, who has previously acknowledged that XRP’s value still depends heavily on speculation.
However, change may be coming. RippleX engineering head Ayo Akinyele recently introduced early discussions around native staking for the XRP Ledger, suggesting that future upgrades may finally bring long-requested features on-chain.
