Can Firelight’s New stXRP Staking Protocol Push XRP Price Higher?

Firelight has launched an XRP staking protocol on the Flare network that issues stXRP, a liquid token intended to support a DeFi insurance model. This marks a significant development for XRP holders who’ve long wanted ways to earn yield on their holdings.

The stXRP staking protocol went live as part of Phase 1, though staking rewards aren’t active yet. Users can bridge their XRP to Flare through the FAssets system, deposit wrapped FXRP, and receive stXRP tokens on a one-to-one basis. Rewards are expected to begin in Phase 2, planned for early 2026, if DeFi protocols adopt the insurance model and pay fees for coverage.

How the stXRP Staking Protocol Actually Works

Here’s where things get interesting. The stXRP staking protocol isn’t your typical staking setup. Firelight is incubated by Sentora, formed through the merger of IntoTheBlock and Trident Digital, and the Flare network, which provides the underlying infrastructure. Both entities have backing from Ripple.

The model combines staking with DeFi insurance. When protocols adopt Firelight’s cover system, they pay fees to purchase protection backed by pooled FXRP. A portion of those fees then flows to XRP stakers as rewards.

Matt Sullivan from Sentora explained their approach: they’re focusing on assets with lower costs of capital like XRP, rather than competing with Ethereum’s DeFi yields. The system is chain-agnostic, meaning any protocol on any chain can integrate and purchase cover.

Could This Impact XRP Price?

XRP is currently trading around $2.15–$2.16, down from recent highs but holding above the psychologically important $2 level. The token has faced headwinds despite strong fundamentals this year.

XRP’s price performance in 2025 has been mixed. The SEC lawsuit was resolved in August 2025, when the agency officially dropped its remaining appeals, removing a major cloud hanging over the asset. Yet the price has struggled to break out convincingly.

Several factors could influence whether the stXRP staking protocol helps push prices higher:

ETF Momentum: XRP spot ETFs have posted roughly $756 million in cumulative inflows over eleven consecutive trading sessions since their launch on November 13, showing genuine institutional interest.

Utility Expansion: The protocol gives XRP holders a new way to generate yield without sacrificing liquidity. This addresses a major limitation since XRP doesn’t offer native staking rewards like proof-of-stake networks.

DeFi Integration: Firelight is in active discussions with several DeFi protocols about integrating the cover system. Wider adoption in Phase 2 could drive meaningful revenue to stakers.

Also Read: Ripple Price Prediction – Will XRP Hit $10 In Next Bull Run?

Market Challenges Ahead

The path forward isn’t without obstacles. Wallets holding 1 million+ XRP have sold about 13 billion tokens in a single week, creating selling pressure. Technical indicators show XRP trading below key moving averages, with resistance in the $2.20-$2.30 range.

Analysts see a bullish scenario with a move to $2.85 by the end of December 2025 but note that this path is “not easy” and would require improved macro conditions.

The stXRP staking protocol represents innovation in the XRP ecosystem. Whether it translates to sustained price gains depends on adoption rates in Phase 2, broader market conditions, and whether DeFi protocols see value in Firelight’s insurance model.

For now, XRP holders have a new option. Early participants can earn Firelight Points while waiting for full rewards to go live. The real test comes in 2026 when the economics of the system become clear.

Also Read: Tired Of Losing Money In Crypto? This Article Is For You

What is the stXRP staking protocol? 

It’s a liquid staking system on Flare that lets XRP holders earn rewards through DeFi insurance fees while maintaining liquidity with stXRP tokens.

When will staking rewards start? 

Rewards are planned for Phase 2 in early 2026, pending adoption by DeFi protocols that purchase insurance coverage.

Is stXRP safe to use? 

Firelight has completed audits by OpenZeppelin and Coinspect, with a bug bounty program through Immunifi for additional security.

Can I use stXRP in DeFi? 

Yes, stXRP functions across the Flare ecosystem, including decentralized exchanges, lending protocols, and liquidity pools.

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