By
Chimamanda U. Martha
April 26th, 2024
The Flare Network has integrated XRP through the LayerCake bridging protocol, thus increasing XRP’s real-world utility amid the mass adoption of digital assets.
Flare Network, an EVM-based layer one (L1) blockchain that provides web3 developers with interoperable multi-chain data, has announced the introduction of FXRP assets that are backed by XRP. The FXRP assets are important in the network growth for Flare Network and the mass adoption of Ripple Labs-backed XRP.
Moreover, XRP will be made available to multichain decentralized applications (Dapps) through FXRP assets that are bridged by the LayerCake protocol. According to Hugo Philion, the Chief Executive Officer of Flare Labs and the co-founder of Flare Network, the introduction of FXRP marks an important milestone in the development of the FAssets.
“FXRP will enable XRP to come to Flare and also other ecosystems through LayerCake. This lets dapp developers build dapps that can interact with the multiple cross-chain assets that will exist and already exist on Flare. Now if hooks were on the XRPL Flare could also serve its high-quality decentralized data to dapps built using hooks,” Philion noted.
Notably, anyone can now mint FXRP through the Ethereum network as ERC-20, which enables XRP to run on different web3 protocols, including on the fast-growing layer two networks. Furthermore, the XRPL network does not support multi-chain smart contracts. Additionally, the Flare network has established trust among different web3 communities through its native token FLR.
Market Implementation on the Introduction of Flare Network’s FXRP Assets
The introduction of the FXRP assets comes at a time when the Ripple and XRP communities are fighting the United States Securities and Exchange Commission (SEC) in an ongoing lawsuit. In the latest update, the US SEC succeeded in convincing the court to compel Ripple to disclose its XRP transactions in the past two years. The development has, however, not deterred Flare Network from integrating the XRP-backed FXRP assets, as the company is not bound by US security laws. Additionally, XRP is globally traded and has obtained regulatory clarity in several other jurisdictions.
Meanwhile, the introduction of FXRP assets means a wider adoption of the FLR coins, which are used for payment of transaction fees. As a result, FLR price has gained more than 80 percent in the past thirty days to trade around $0.031. The mid-cap altcoin, with a fully diluted valuation of about $3.2 billion and an average trading volume of around $50 million, has been on a rising trajectory since the fourth quarter of 2023.
As for XRP, the large-cap altcoin has dropped about 10 percent in the past four weeks to trade around 51 cents on Monday during the early New York session. Nevertheless, the XRP price is fast approaching the apex of a macro triangular consolidation that began after the 2017/2028 bull market, signaling an inevitable bullish breakout.