XRP spot trading debuts on Hyperliquid, can Flare's FXRP fill the $11.6 billion staking gap?

Flare announces the launch of the FXRP spot trading pair on Hyperliquid, marking Hyperliquid’s first XRP spot market. Previously, the platform only supported XRP perpetual contracts. FXRP is a cross-chain token issued based on the Flare FAssets system and LayerZero standard, pegged 1:1 to XRP, which can be redeemed on the XRP Ledger after trading on Hyperliquid. This move signifies XRP’s official entry into the spot trading era of the DeFi ecosystem.

What is FXRP and Why Is It Needed

Background of Cross-Chain Token Birth

As the native asset of the Ripple network, XRP has long faced an awkward situation: despite a market cap of $13.171 billion (4.21% market share), it lacks native support in mainstream DeFi ecosystems like Ethereum and Solana. This forces XRP holders to sell XRP for ETH or SOL before participating in DeFi lending, liquidity mining, and other activities.

The emergence of FXRP solves this pain point. It is an EVM-compatible version of XRP issued by Flare through the FAssets system, allowing direct use on Ethereum-compatible chains while maintaining decentralized custody and final settlement on XRPL. In simple terms, FXRP is like giving XRP “DeFi wings.”

Why choose Hyperliquid

Hyperliquid is a unique player in the crypto trading space—it uses an order book model rather than AMM, known for low slippage and high efficiency. Previously, Hyperliquid only supported XRP perpetual contracts. Now, with the introduction of FXRP spot trading, XRP holders can directly trade spot on this efficient platform without multiple cross-chain bridges.

According to analysis, this partnership also significantly reduces trading fees—by about 90% compared to traditional DeFi channels. For large traders, this is undoubtedly a major benefit.

Market and Ecosystem Significance

Filling the Liquidity Gap

According to data, there is currently approximately a $11.6 billion staking gap in XRP—many XRP holders cannot find safe and efficient DeFi participation channels, leading to idle assets. The launch of FXRP on Hyperliquid opens a new outlet for these users.

Current XRP price performance also supports this view: although down 4.18% in 24 hours, it has increased 17.84% over 7 days, indicating market optimism about XRP’s medium-term prospects.

Advancing the XRPFi Vision

The launch of FXRP by Flare is not an isolated move but an important part of its “XRPFi” strategy. Recent projects under XRPFi include earnXRP and stXRP liquidity staking from Firelight Finance. This demonstrates that Flare is systematically building an XRP-centered DeFi ecosystem.

The debut of FXRP on Hyperliquid marks the transition of this ecosystem from concept to reality. Flare aims to make FXRP the standard XRP representation in DeFi, and this partnership with Hyperliquid is just the beginning.

Key Data Overview

Future Outlook and Risk Warnings

Potential Development Directions

If FXRP performs well on Hyperliquid, Flare may promote its listing on other major DEXs and exchanges. This would further expand XRP’s application in DeFi and could attract more institutional users.

Additionally, with the launch of Flare’s smart accounts, the redemption process for FXRP will become more convenient, potentially lowering participation barriers for users.

Risks to Watch

• Regulatory Risks: The legal status of XRP remains controversial; policy changes could impact FXRP’s compliance and liquidity.
• Technical Risks: Cross-chain bridging involves complex smart contracts; any vulnerabilities could lead to asset risks.
• Market Risks: As a new product, FXRP may have limited liquidity initially, and large trades could face slippage.
• Trust Risks: Users need to trust Flare’s FAssets system and LayerZero’s security.

Summary

The launch of FXRP on Hyperliquid is a significant milestone in the development of the XRP ecosystem. It not only opens new doors for XRP holders to participate in DeFi but also signifies Flare’s XRPFi strategy moving from concept to implementation.

From a market perspective, this move could help alleviate XRP’s liquidity pressures and attract more capital into XRP-related DeFi ecosystems. However, investors should remain aware that this market is still in early stages, with ongoing regulatory and technical risks.

For XRP holders, now is a good time to observe how this new ecosystem develops. If FXRP can establish stable trading volume and a user base on Hyperliquid, Flare’s goal of integrating XRP into mainstream DeFi could be within reach.