Spot XRP (XRP) ETFs could absorb $4 billion to $8 billion by year-end under a Standard Chartered model tied to permanent commodity status, while Flare has grown into the largest XRPFi ecosystem by total value locked.

Flare TVL Hits $457M

The forecast hinges on passage of the CLARITY Act, which would codify XRP's classification as a digital commodity under federal law. It also raises a practical question for institutional allocators: where XRP capital earns yield once it sits inside a fund wrapper. The token was not designed for programmable finance, and dedicated onchain infrastructure is relatively new.

Flare's total value locked has doubled to $457 million on DefiLlama in recent months, with about $200 million tied directly to XRP. That makes it the largest XRPFi ecosystem by a wide margin.

Exchange-level access is also approaching. Uphold plans to launch direct FXRP minting this summer, opening a path for XRP holders to reach Flare strategies without a separate bridge interface.

Also Read: LUNC At $0.000103: Why The Post-Collapse Chain Still Draws Trading Volume

Tokenomics Shift At Flare

Analysts note that institutional XRP buyers will likely seek lending venues, collateral markets and managed vaults once ETF allocations clear. Ethereum-style DeFi rails are not natively available on the XRP Ledger, which leaves room for adjacent chains to fill the gap.

Flare is also reworking its token economics through a governance overhaul that is mid-implementation. The package includes a 40% cut to emissions, protocol-level MEV capture and stronger burn mechanics, changes framed by supporters as a tightening of supply.

FXRP activity on Flare has so far recorded 3.4 million transactions across about 16,500 users, with $200 million in XRP TVL anchoring a $440 million ecosystem.

Read Next: Gold ETFs Snap Back: $6.6B April Inflows Reverse Record March Rout