Haotian | CryptoInsight
Haotian | CryptoInsight|Jun 16, 2025 12:02
With a market value of 132 billion US dollars, but only one AMM is supporting the scene - is this the embarrassing situation that the XRP ecosystem has been facing for a long time? However, the recent news that VivoPower, a listed company, has just invested $100 million in XRP on @ FlareNetworks may rewrite this situation. To be honest, my first reaction when I saw this news was: finally someone dares to eat crab. XRP, as a non smart contract cryptocurrency second only to Bitcoin, is an absolute leader in the cross-border payment field, but it has not fully realized its potential in the rapidly developing battlefield of DeFi. And now, the collaboration between Flare Network and VivoPower may be the beginning of a real breakthrough in the XRPFi ecosystem. 1) XRP and Ripple have never lacked market value recognition. The problem lies in how to provide richer "application ecology" support for their position as the fourth largest market value in DeFi and stablecoins, which are gradually being regulated. This has always been an unresolved issue. The market value of 132 billion US dollars is there, but its application scenarios in the DeFi field are relatively limited. This "valuable but not applicable" state is indeed awkward, which hinders the full potential of XRP. The emergence of Flare Network precisely hit this pain point. As an EVM compatible Layer 1, Flare's core innovation is the FAssets protocol - which enables XRP to be packaged as FXRP in a trustless and decentralized manner, thereby giving XRP smart contract functionality. With FXRP, XRP can be seamlessly integrated into every DeFi protocol on Flare. SparkDEX is responsible for trading, Kinetic handles lending, and Sceptre plays liquid staking - a complete DeFi ecosystem is thus revitalized. However, just having asset composability is not enough. For the DeFi ecosystem to truly operate, stablecoin liquidity is an absolute necessity. This is also Flare's second trump card: the full chain stablecoin USD ₮ 0 based on the LayerZero OFT standard can directly connect to a USDT liquidity pool of over 140 billion US dollars. In this way, the power of this combination punch came out: FXRP solved the composability problem of XRP, and USD ₮ 0 solved the liquidity infrastructure problem. XRP has been completely upgraded from a simple "payment tool" to a "DeFi native asset". Users can use XRP as collateral for lending, provide liquidity to earn income, and participate in various DeFi strategies. Flare Network has paved the way for XRP's shortcomings. 2) After setting the background, let's take a look at the significance of VivoPower's action. Firstly, as a traditional listed company, the due diligence and risk control standards behind being able to invest $100 million all in an emerging DeFi ecosystem are definitely not a joke. This means that Flare's technical architecture and security mechanisms must also meet institutional level requirements. What's even more interesting is VivoPower's "flywheel strategy": generating profits through protocols on Flare, and then reinvesting the profits directly into core XRP positions, forming a self reinforcing cycle of "earning profits → more XRP funds → redeployment". This gameplay essentially operates digital assets as productive assets that generate cash flow, rather than simply storing value. Is this concept similar to Payfi's current focus on revenue based stablecoins? Of course, the resources supporting this strategy are also very hardcore: the shareholder alliance of the Saudi prince, guidance from the former Ripple Asia executive team, and RLUSD stablecoin as a cash reserve. The entire configuration has both financial strength and ecological resources, as well as compliance guarantees. The effect can also be seen from market data: Flare's TVL skyrocketed by 1600% after its launch at USD ₮ 0, with a total TVL exceeding $85 million and an annual growth rate of over 400%. Behind this explosive growth is the strong demand from institutional funds for compliant DeFi solutions being unleashed. above. Overall, the collaboration between Flare and VivoPower is indeed an important milestone in the XRPFi ecosystem, marking the official entry of institutional level XRP into the DeFi field. But ultimately, the success of this story depends on the comprehensive performance of technological stability, liquidity accumulation, and regulatory adaptability. After all, even the most exquisite flywheel design needs to be able to rotate first.
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