🚀 FLX Soars 10% as Flare Network Supercharges XRP DeFi Ecosystem

Flare Network's FLX token rockets into double-digit gains—proving once again that crypto moves faster than Wall Street analysts can say 'overvalued.'

The XRP Connection: Flare's latest expansion turns XRP into a DeFi powerhouse, sidestepping legacy finance's red tape with smart-contract functionality.

Why Traders Care: That 10% pump isn't just hype—it's a bet on interoperability winning the blockchain wars. Meanwhile, traditional banks still think 'DeFi' is a typo.

One cynical footnote: If you missed this rally, don't worry—there'll be another 20% swing by lunchtime. Such is crypto.

Flare bridges XRP-DeFi gap 

Flare recognizes that interest in XRP is growing from both institutional and retail investors, who are seeking "secure, efficient, and regulated exposure to XRP for use in DeFi," as mentioned in a post in May.

However, until now, it has not been possible to capture the full potential of XRP, being a non-smart contract token. Some of the key features Flare is bringing to XRP include DeFi yields, staking, lending, borrowing and trading.

"While there are existing DeFi solutions, choices are limited because XRPL is not a truly composable chain that supports EVM or newer smart contract languages," Flared said in a blog post published on Wednesday.

As an ethereum Virtual Machine (EVM)- compatible Layer-1 blockchain designed for interoperability, Flare ensures the use of XRP trustlessly in DeFi. Stablecoin liquidity on the Flare Network has been growing, with the market cap rising 1,600% over the past week, according to a blog post. 

This surge was made possible with the launch of USD₮0, an Omnichain stablecoin backed 1:1 by Ethereum-based USDT. USD₮0 stands out for its gas-free transactions and robust security. 

"By pairing XRP with USD₮0, users can create deep, stable trading pools, offer collateral for loans, and tap into the $140 billion of USDT stablecoin liquidity that exists today," Flared explained.

As DeFi adoption accelerates on Flare, holders of XRP can expect DEEP liquidity provision, efficient trading and perpetual contracts trading all provided under the XRPFi Flywheel. Thanks to USD₮0 stablecoin, the DeFi Total Value Locked (TVL) has exceeded $85 million on Flare.

Following the announcement, FLR price reacted, rising over 20% to trade at around $0.0261 at the time of writing.

Technical outlook: Can Flare extend uptrend?

Flare is trading in an overheating market, as evidenced by the Relative Strength Index (RSI), which is extremely overbought at 85. Still, if interest in the token remains steady, particularly with the spot volume rising above $19.5 million, the uptrend could continue sustainably, or allow for consolidation at a higher level.

The movement of the Moving Average Convergence Divergence (MACD) indicator above the zero line suggests bullish momentum is increasing. Traders may consider seeking exposure, citing a buy signal triggered when the blue MACD line crossed above the red signal line on Tuesday. 

FLR/USDT daily chart

A Golden Cross pattern on the daily chart could help buoy the FLR price, flaunting a bullish structure amid improving market sentiment. The bullish pattern will confirm after the 50-day Exponential Moving Average (EMA) closes above the 100-day EMA on Wednesday.

In the event of a correction due to overheated market conditions and potential profit-taking, traders could anticipate support at $0.0236, which was previously tested as resistance on May 9. The 200-day EMA at $0.0186 could also provide support, preventing the decline from extending to $0.0151, which represents the June lows.

Open Interest, funding rate FAQs

How does Open Interest affect cryptocurrency prices?

Higher Open Interest is associated with higher liquidity and new capital inflow to the market. This is considered the equivalent of increase in efficiency and the ongoing trend continues. When Open Interest decreases, it is considered a sign of liquidation in the market, investors are leaving and the overall demand for an asset is on a decline, fueling a bearish sentiment among investors.

How does Funding rates affect cryptocurrency prices?

Funding fees bridge the difference between spot prices and prices of futures contracts of an asset by increasing liquidation risks faced by traders. A consistently high and positive funding rate implies there is a bullish sentiment among market participants and there is an expectation of a price hike. A consistently negative funding rate for an asset implies a bearish sentiment, indicating that traders expect the cryptocurrency’s price to fall and a bearish trend reversal is likely to occur.