Flare Aims to Inject 5 Billion XRP into DeFi Ecosystem Over Next Six Months

Flare Networks is gearing up for its biggest XRPFi expansion yet, with the first upgrades expected within weeks. Flare CEO Hugo Philion says that over the next six months, the network will work to bring more XRP into DeFi, potentially moving up to 5 billion XRP into the ecosystem.

The move comes as the XRP price has been struggling to gain momentum after dropping 72% from its peak. Flare aims to address a key weakness of the XRP Ledger by adding a missing DeFi layer without altering the core XRP Ledger itself. The company's FAssets system will play a central role in this plan, allowing XRP holders to mint FXRP at a 1:1 ratio and use it across various DeFi applications.

The target is ambitious, with Flare hoping to attract up to 5% of the total XRP supply into the ecosystem. If reached, such a large amount moving into DeFi could reduce the amount of XRP sitting on exchanges and give the token more use beyond payments. The first phase has already shown strong demand, with XRPFi boasting $200 million in XRP TVL, over 3.4 million FXRP DeFi transactions, and around 16,500 users.