Flare Launches First XRP Spot Market on Hyperliquid, Expanding Institutional Liquidity

Flare Network has launched the first XRP spot market on Hyperliquid, introducing FXRP as a wrapped representation of XRP. This move allows XRP to trade on Hyperliquid's onchain orderbook, expanding institutional and retail liquidity access. The integration aims to enhance XRP's utility in decentralized finance (DeFi) while maintaining the XRP Ledger as the primary settlement layer.

The XRP price has faced early pressure in 2026 despite regulatory clarity and strong ETF inflows. XRP closed 2025 at $1.85, having dropped from a peak of $3.66 in early 2025. The price remains below key psychological levels, with analysts noting a potential test of support near $1.80 if downward momentum continues.

On-chain data shows reduced activity for XRP, with daily active addresses on the XRP Ledger significantly below their March 2025 highs. The exchange supply of XRP has also reached its lowest point since 2018, indicating that holders are retaining assets rather than selling them.

Why Did This Happen?

Flare's FXRP listing was made possible through its FAssets infrastructure and the LayerZero OFT standard. FXRP allows XRP to move between chains, trade on Hyperliquid, and return to the XRP Ledger as a native asset. This non-custodial bridge addresses prior limitations and enables onchain trading without centralized custody.

The XRP ETF market has seen over $1.25 billion in inflows since the launch of the first spot products in November 2025. Franklin Templeton, Bitwise, and Canary Capital have led inflows, with WisdomTree previously filing an ETF application. However, WisdomTree recently withdrew its S-1 registration, citing a decision not to proceed at this time.

How Did Markets React?

XRP's price dipped around 5% in the wake of WisdomTree's withdrawal, trading at approximately $2.20. Despite this, the ETF market continues to attract strong inflows, with Franklin Templeton's XRPZ ETF leading the way with $7.35 million in new capital. Other ETFs also recorded significant inflows.

The XRP ETF landscape is becoming increasingly competitive. With five active products in the U.S. and several pending applications still before the SEC, the market is seeing a consolidation of supply. Analysts expect XRP ETFs to surpass 1 billion tokens by mid-2026, given the current inflow pace.

What Are Analysts Watching Next?

Technical indicators suggest a potential breakout or breakdown in the short term. The RSI sits at 48, indicating a neutral position. Analysts are closely watching the $2.00 level, a key psychological support. If the price remains above this level, a test of $2.20 and $2.45 could follow.

Long-term predictions vary. Standard Chartered and other analysts see potential for XRP to reach $8 by the end of 2026, driven by regulatory improvements and ETF demand. However, skeptics like Peter Brandt warn of a double top pattern, suggesting the token may fall below $1.

The success of XRP in 2026 will depend on a combination of factors, including regulatory developments, ETF inflows, and network activity. If XRP can maintain support levels and continue to attract institutional investment, the token could see a meaningful rebound. However, a failure to break above key resistance levels may lead to further downward pressure.