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An XRP community figure says XRP has been a speculative asset awaiting the next big run, but things could turn around with the introduction of DeFi opportunities.
For context, the XRP Ledger has operated for more than 13 years, but it still lacks smart contracts and staking features because its developers originally built it that way. This design means XRP holders cannot stake their tokens directly on the XRP Ledger or earn yield natively. Instead, XRP has relied much on speculation besides its utility in payments.
XRPL Lacks Smart Contracts and Native Yield
As a result, several third-party teams have tried to fill the gap, and XRP community figure Crypto Eri believes Flare represents one of the most important efforts. She recently highlighted this while commenting on an expose from media platform The Defiant.
Specifically, Virginia Valenzuela of The Defiant recently highlighted Flare in a sponsored review. She noted that 2025 has brought renewed interest to XRP, with growing talks about institutional use and ETF approvals.
According to her, these developments helped boost the token’s momentum. However, even with this momentum, she said most holders still treat XRP as a speculative asset, often leaving it untouched while they wait for the next strong price move.
Valenzuela pointed out that anyone hoping to use XRP in DeFi has minimal options. Because the XRP Ledger does not support smart contracts, it shuts the door to many of the more advanced strategies that exist on other networks.
She mentioned that estimates place Ripple’s DeFi activity at around $83 million in total value, mostly tied to the main XRP Ledger. According to reliable on-chain data, XRPL DEX, Open Eden, and Doppler Finance currently lead this activity.
Flare Looking to Fill the Gap
Valenzuela then moved to developments outside the XRP Ledger and explained that Flare has become one of the strongest drivers of XRP’s expanding utility. She said Flare now secures about $225 million in total value and argued that this growth deserves close attention. For context, Flare debuted FXRP on Sept. 24, about a month ago.
Speaking further, Valenzuela described Flare as a blockchain built around data. She said it includes its own oracles and supports use cases that require frequent or reliable data feeds. She also noted that Flare works as an EVM-compatible Layer 1 network to support new applications for assets like XRP.
USDT0, FXRP, and Firelight
She highlighted three major features that make this possible. First is USDT0, a stablecoin that Flare added using the Omnichain Fungible Token standard from LayerZero. According to her, USDT0 acts as a secure, chain-agnostic asset that moves freely across blockchains without traditional bridges.
She explained that pairing XRP with this stablecoin creates deeper liquidity pools, builds reliable collateral for loans, and improves the usefulness of both assets across DeFi.
Valenzuela then talked about FXRP, which lets users bring XRP onto Flare without moving the real tokens off the XRP Ledger. The original XRP stays on its home chain, while FXRP, an ERC-20 version, gives holders access to lending markets, perpetual trading platforms, decentralized exchanges, and other DeFi tools.
Last, she pointed to Staked XRP and the Firelight mechanism. According to her, Firelight will allow XRP holders to stake their tokens and receive Staked XRP, a liquid staking asset that earns yield while staying usable across DeFi platforms.
She explained that USDT0, FXRP, and Staked XRP work together to build a more complete DeFi system for XRP holders. In her view, deeper liquidity leads to better market efficiency and more real opportunities for yield without compromising security or accessibility.
Eri Commends Flare’s Endeavor
Commenting, XRP community figure Crypto Eri supported this presentation. Eri noted that XRP has mostly served as a speculative asset that holders keep while waiting for the next rally. According to her, the XRPL’s lack of smart-contract features forces the ecosystem to depend on external networks for yield and staking.
She argued that Flare now fills this gap by presenting unique use cases for XRP. When an investor claimed XRP had never been speculative, she highlighted an earlier observation from Ripple CTO David Schwartz, who stated that the value of XRP and many other digital assets still depends heavily on speculation.
However, it is important to note that Ripple is already exploring avenues to introduce native staking to the XRP Ledger. RippleX’s engineering head, Ayo Akinyele, presented the idea earlier this month, giving room for discussion on which options remain viable.