After Flare launched FAssets v1.3 on May 15, the market reacted quickly, with FLR rising by as much as 14% that day. The core change in this upgrade is that it allows XRP holders to transfer their assets more directly into Flare's DeFi ecosystem.
Supports direct minting of FXRP from exchanges
The new version allows users to mint XRP to FXRP in a single transaction using the XRP Ledger's native destination tag. According to reports, users can initiate withdrawals directly from centralized exchanges such as Binance and Kraken, completing the process as part of the minting workflow.
This means that the previously cumbersome multi-step process has been further streamlined. For Flare, the focus of these changes is not only on improving the user experience, but also on lowering the barrier for XRP funds to enter the on-chain ecosystem.
Multiple altcoins strengthened simultaneously.
Besides FLR, Hyperliquid's HYPE rose approximately 16% in 24 hours, and Unibase's UB rose 11%. The report noted that some funds are shifting from Bitcoin and Ethereum to tokens with smaller market capitalizations.
- FLR: rose as much as 14%
- HYPE: Up 16% in 24 hours
- UB: Up 11% in 24 hours
During the same period, the cumulative trading volume of cryptocurrency futures rose to $220 billion in 24 hours, an increase of about 14%.
Bitcoin remains suppressed by key price levels
Compared to the strength of altcoins, Bitcoin's performance was relatively weak. Reports indicate that Bitcoin failed to rise above its 200-day simple moving average of approximately $82,228 throughout the trading day, trading at around $80,592 at one point.
Bitcoin briefly rose above $82,000 after the Senate Banking Committee passed the Clarity Act by a vote of 15 to 9. However, higher-than-expected inflation data and pressure from approximately $2.6 billion in expiring options subsequently caused the gains to be given back.
Flare had previously initiated token economics adjustments.
The report also mentioned that Flare has been pushing for broader adjustments to its token economy recently. According to FIP.16, the annualized inflation rate of FLR has been reduced by 40% to 3%, while a protocol-level MEV capture mechanism has been introduced in an attempt to more closely link network usage with token value.
Similar upgrade catalysts previously led to increased trading volume after XRP funds flowed into the Flare ecosystem. This is also one of the key reasons why the market is paying attention to the launch of FAssets v1.3.
