XRP Price News: 8% Yield on Flare’s New Product Could Boost XRP’s Demand

XRP (XRP) has taken a hit in the past 3 days after hitting a sell wall at $2.35. However, a new product launched by the layer-1 blockchain Flare could boost the token’s demand in the mid-term.

Flare Official X Account – Source: X.com

Flare specializes in interoperability. As a way to validate the strength of its architecture, the project launched a product called FXRP that can now be bought through Hyperliquid.

This is the first time that users of the perps exchange will be able to buy XRP in some way on the spot market.

FXRP is fully collateralized by XRP tokens and can be redeemed by the latter on the XRP Ledger through a sophisticated solution created by Flare.

Flare Launched an XRP Yield-Bearing Product Called earnXRP Recently

This project recently launched a program called earnXRP and a token with that same name that gives investors access to an investment pool that currently yields 8% per year.

“It allows users to deposit FXRP (XRP represented 1:1 on Flare) into a single vault that deploys capital across a diversified set of yield strategies. All returns are automatically compounded back into XRP,” the product’s description on the official website reads.

Flare’s earnXRP Yield Vault – Source: Upshift

The document further explains: “The earnXRP vault uses a diversified, market-aware strategy designed to generate yield while remaining fully denominated in FXRP. These strategies bring onchain versions of yield-generation approaches that professional funds have used for years — now accessible through a single vault.”

Yield is generated through two strategies primarily: funding a liquidity pool on a handful of DEXs and carry trades (borrowing capital on one venue and lending it on another, keeping the resulting profit).

These are not risk-free strategies, and that 8% annual percentage yield (APY) is variable, not fixed. Hence, investors should still conduct due diligence and approach this product with caution as it is far from a “sure thing.”

In any case, in a market where taking high risks is the norm, higher volumes flowing to FXRP to take advantage of this high-yield product could drive significant demand toward the underlying asset to keep the 1:1 collateral ratio.

Massive Buy Signal in the Weekly Chart Has Not Yet Been Confirmed

We continue to keep a close eye on how this historical pattern in the weekly chart unfolds. The next few weeks are critical as the Relative Strength Index (RSI) in this higher time frame needs to cross above the 14-week moving average to confirm a buy signal.

XRP/USD Weekly Chart (Binance) – Source: TradingView

The two lines are on top of each other at this point. However, since XRP has retreated for three days in a row, the week seems to be heading to close with losses.

Ideally, we need a move above $2.7 to confirm a bullish outlook that could unleash a massive upside potential of 200% or more based on how this same buy signal has performed in previous years.

The launch of yield-bearing products like FXRP is positive as it further fuels demand toward Ripple’s ecosystem and, consequently, to its native asset.

We also saw a spike in the market value of Ripple USD (RLUSD) recently. The project’s native stablecoin experienced a 30% jump in its market cap as adoption continues to accelerate.

The long-term outlook for XRP remains positive, while technical indicators seem ready to send a massive buy signal. Stay tuned.