XRP's Long-Inactive $180B Activated: 8 Billion Tokens Deployed into DeFi
- Axelar and Flare Networks activate 8B dormant XRP tokens via DeFi initiatives, targeting $180B market cap liquidity. - Midas and Axelar launch mXRP, offering up to 8% annual yield via DeFi strategies on XRPL EVM with cross-chain accessibility. - Flare's XRP-backed stablecoin (FXRP) launches Sept 19, expanding DeFi use cases through CDPs and FTSO oracle mechanisms. - Cross-chain integration via Axelar enhances XRP composability, but regulatory risks and market volatility remain key challenges.
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Flare Networks is also advancing this trend with its stablecoin project backed by XRP, which uses Collateralized Debt Positions (CDPs) to convert XRP into FXRP and stXRP. Scheduled for release on September 19, the initiative seeks to broaden XRP’s role in DeFi by supporting stablecoin creation and yield opportunities through features like Stability Pools and the Flare Time Series Oracle (FTSO). These efforts are part of a larger movement to activate XRP’s $180 billion market capitalization, much of which has been underutilized due to a lack of inherent yield options.
Axelar’s function as a cross-chain connector is pivotal, allowing XRP to engage with DeFi protocols across multiple networks. By representing XRP on the XRPL EVM, Axelar streamlines integration with decentralized apps, boosting both flexibility and scalability. Midas CEO Dennis Dinkelmeyer highlighted that mXRP offers a “direct pathway” for XRP investors to participate in on-chain opportunities, suggesting that the appetite for yield-focused products could accelerate XRP’s adoption among both institutional and individual users.
These initiatives could have a notable impact on XRP’s supply and liquidity. By targeting the activation of over 8 billion tokens, they may decrease the share of dormant XRP, thereby enhancing its usability and tradability. Experts point out that mXRP’s approach—merging smart contract-based yields with cross-chain reach—sets a new standard within the XRP landscape. Furthermore, Flare’s stablecoin system introduces additional applications for XRP in secured lending and stablecoin production, expanding its financial utility.
Although these projects are still in their early phases, their potential to redefine XRP’s position in DeFi is evident. By tackling previous barriers to yield and interoperability, Axelar and Flare are cultivating a more vibrant XRP environment. Nevertheless, issues like regulatory requirements and market fluctuations highlight the importance of careful engagement. As the XRP community considers these new developments, their progress could mark a significant move toward tokenized finance, positioning XRP as a key asset in decentralized financial systems.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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