Payments-Focused Cryptocurrency This has changed little in 24 hours, in line with the broader crypto market, even after the introduction of a new product that allows holders to earn extra money without selling their tokens.
On Tuesday, Upshift, Clearstar and Flare unveiled EarnXRP, a vault designed to make it easier for XRP holders to generate returns on top of their spot market holdings. The new offering helps XRP holders bypass the complexities of managing DeFi strategies and pays XRP-denominated yield.
Upshift is a platform dedicated to providing a toolkit for protocols and wallets to develop DeFi earnings vaults. Clearstar is an on-chain risk curator that builds institutional-grade DeFi vaults and Flare is a layer 1 blockchain designed for data-intensive use cases. Fintech company Ripple uses XRP to facilitate cross-border transactions.
How EarnXRP works
Users deposit Flare’s FXRP, an over-collateralized 1:1 representation of XRP compliant with Ethereum’s ERC-20 token standard on Flare, into a vault that deploys capital into various strategies. In return, users receive EarnXRP, a receipt token representing their share in the vault and accumulated yield denominated in XRP.
This time of year is typically characterized by low investor participation and low liquidity, leading to erratic price movements.
XRP could see a late-year rebound as social sentiment turns decidedly negative – a contrarian signal that has historically preceded rallies, according to Santiment.
“XRP receives significantly more negative comments on social media than average. Historically, this setup leads to price increases. When retail has doubts about a coin’s ability to rise, the rise becomes much more likely,” analytics firm Santiment said on X.
As the poet Charles Bukowski said, the masses are always wrong.
