XRP has seen a modest uptick in price as Flare Network rolls out an innovative yield-focused product aimed at giving holders a new way to earn without selling their assets.
The cryptocurrency, which has traded in a relatively narrow range over the past week, is currently hovering around $1.87, reflecting a 0.8% increase a day after Christmas 2025.
While market sentiment remains cautious, the launch of Flare’s new earnXRP product brings a fresh narrative for investors looking to put their XRP to productive use.
Flare unveils earnXRP
Flare Network, in partnership with Upshift and Clearstar, has introduced earnXRP, the first on-chain yield product fully denominated in XRP.
For the first time, holders of the fifth-largest cryptocurrency by market capitalization can generate yield directly in XRP without needing to navigate complex DeFi strategies.
This new vault leverages Flare’s FAssets system, allowing XRP to be represented on the network as FXRP, an ERC-20 token pegged one-to-one with XRP.
Once deposited into the vault, FXRP is deployed across diversified yield-generating strategies, and users receive earnXRP tokens that automatically track their deposits and any accrued earnings.
The structure of earnXRP simplifies DeFi participation by automating strategy execution, rebalancing, and compounding, all while keeping the returns fully denominated in XRP.
Users can request withdrawals at any time, with their earnXRP tokens burned and FXRP returned to their wallets.
Standard withdrawals follow a 72-hour window, but instant redemption is available for a small fee.
This accessibility and transparency mark a significant step forward for XRP holders who have historically had limited options for earning yield on their assets.
How the yield is generated
The earnXRP vault utilizes a combination of FXRP deployments and carry trade strategies to generate returns.
FXRP can be minted or swapped into stXRP and then deployed into concentrated liquidity pools on Enosys and SparkDEX, earning trading fees and protocol incentives.
Carry trade strategies involve borrowing stablecoins against FXRP at low rates and deploying them into other DeFi protocols where yields exceed borrowing costs.
These profits are compounded back into FXRP, maintaining the fully XRP-denominated nature of the vault.
Additional strategies, including fixed-yield tokens and cross-chain opportunities, are planned for future integration.
By aggregating multiple on-chain strategies into a single, non-custodial vault, earnXRP allows investors to capture returns previously available only to professional funds while maintaining exposure to their preferred asset.
Early users are incentivized with five times the standard Upshift Points, and initial deposit caps of 5 million FXRP ensure responsible scaling of strategies.
Fees for the first 30 days of the launch are waived, making participation even more attractive.
XRP market reaction remains muted
Despite the significance of the earnXRP launch, XRP’s immediate market response has been limited, reflecting broader market conditions that continue to weigh on the altcoin sector.
The cryptocurrency’s 24-hour trading volume stands at around $1.88 billion, with a circulating supply of over 60.5 billion XRP and a market capitalization of approximately $113.4 billion.
Over the past week, XRP has moved within a range of $1.83 to $1.95, showing little deviation from its established trading patterns.
Analysts suggest that while earnXRP represents a milestone for XRP-based DeFi, broader sentiment and macroeconomic factors are currently the primary drivers of price movements.
Eyes are currently on the resistance at $1.92 if the XRP price stays above $1.83. Analysts like CoinLore forecast that breaking above $1.92, could see XRP rise to the next resistance level at $2.00.
However, if the price drops below $1.83, the altcoins could see a further decline to the next support level at $0.7967.