The following is a guest post and analysis by Vincent Maliepaard, marketing director at Sentora.
2025 has marked a turning point for XRP, which combines explosive price gains with transforming shifts in its core story. In July the token reached a record high of $ 3.58, partially propelled by decisive legal victories. In addition to the price promotion, Ripple’s launch of the RLUSD Stablecoin has received a considerable traction and the network is now doubling the expansion of the Footprint of XRP in the Defi -Ecosystem.
The basis of the XRP outbreak was laid when the SEC dropped its lawsuit against Ripple, which removed an important overhang of the regulations that had been suppressing institutional interest for years. This legal resolution and the crypto-friendly policy framework of the Trump administration, including the Genius Act, catalyze a wider bullmarkt on digital assets.
Toking has also benefited from a strategic revaluation as institutional investors involved in speculative rotation to below native cryptocurrencies with large caps, where XRP is recognized as a legitimate capital layer instead of a speculative trade vehicle.
This dissertation was reinforced by Ripple’s launch of the RLUSD Stablecoin at the end of 2024, which quickly scaled to a market capitalization of $ 600 million and demonstrated the real utility in stimulating adoption momentum. The expansion of the ecosystem has continued with the launch of the XRPL EVM Sidechain, improving interoperability and smart contract functionality, while building up anticipation around the possible approval of an XRP ETF that could further accelerate the institutional acceptance.
Let’s dive for a breakdown of the growth and momentum of XRP, new players in the ecosystem and the breakthrough of XRP in Defi.
XRPs Growth and Momentum
The concentration dynamics of XRP reveals an adult institutional ownership structure that reflects traditional financial assets, whereby the top 10 portfolios control approximately 41% of the circulating delivery, which extends to 50% below the top 20 holders and more than 70% within the Top 100. This concentration pattern, which concentration pattern, gives insteading pattern, that concentration pattern, which turn pattern allocation, in -retention pattern, which is a concentration pattern, in -retention pattern, that concentration pattern, that concentration pattern, that is the concentration pattern of retention pattern, which is the concentration pattern of retention pattern. Supports in an institutional asset class.
The transformation of token an earlier cycle -leaving back to a favorite received considerable validation through the integration of Coinbase. In July, the Exchange CBXRP, a packed token with 1: 1 by XRP specifically designed for cross-chain functionality. This infrastructure development immediately unlocked new use cases, where Moonwell becomes the first major Defi protocol to support CBXRP, allowing members of the community to borrow and borrow the packed token in the Defi -Ecosystem of the Platform.
The growth of CBXRP on Moonwell is steadily and is gradually growing to more than $ 1.2 million in liquidity since the launch in June. Although this may be far from XRP’s typical heads of multi-billion dollars, it marks an important milestone in the Defi journey of XRP.
These developments indicate a fundamental shift in how traditional fairs and Defi protocols position XRP, go beyond simple trade solutions. The combination of concentrated institutional ownership, improved technical infrastructure by packed tokens and expansion of the credit markets shows that XRP is experiencing an adoption momentum, because capital flows increasingly recognize its usefulness as a cross-border settlement layer and digital activa of Institutional.
Expand to Defi
The expansion of XRP to decentralized financing is a natural progression for what Gabriel Halm of Sentora Describes as a blockchain that ‘successfully established itself as a digital payment network’, where Defi development ‘is an intuitive next step in creating an extensive financial ecosystem for XRP’. This evolution deals with a critical gap in the usefulness of XRP, because it was historically missing the fundamental Defi Primitives.
Flare Network has emerged as such an infrastructure provider for XRPFI, by the introduction of Fassets– who enables the launch XRP holders to convert their tokens into FXRP, a packed version of XRP. This works in a non-guardianship, Trust-Geminimized Framework that uses smart contracts for verification of cross-chain.
Upcoming yield options for XRP in Defi
Although users can currently earn a modest yield (approximately 0.1% currently) by delivering CBXRP to Moonwell, a considerably higher efficiency on the horizon can be with the upcoming launch of the Fire brigade protocol On Flare.
Firelight is intended to bring eConomic Security and Revenue generation To the XRP ECO system, just like how Eigenlaerer has unlocked extra deployment yield for ether. By using Stutet XRP for economic safety, the architecture of Firelight can enable innovative Defi applications – such as such as Insurance– That was not feasible before.
Such as Hugo Philion, co-founder of Flare Network, explains:
“Firelight offers on-chain XRP yield options, both for institutions and retail holders, improving capital efficiency for XRP and further strengthening the usefulness.”
Look forward
The growth story of XRP shifts from price cycles to long-term structural evolution in the short term. The convergence of regulatory clarity, institutional adoption and defi-expansion, powered by platforms such as base, Moonwell, Flare and Firelight, broadens the usefulness of XRP and determines it as a yield-bearing assets.
Although it may not be dominant power in Defi, these developments can strengthen the role of XRP as a bridge between traditional finances and emerging opportunities in the chain.
