XRP Liquid Staking Expands While Critics Warn of Yield Risks

Digital Asset Investor, a well-known XRP commentator, has expressed caution over yield in response to recent sales promising between 8% and 10% annual returns on XRP holdings.

In a public statement, he said he would rather give up part of the possible yield in exchange for an insurance policy from an established company that guarantees asset safety. Until such safeguards are available, he confirmed he would keep his XRP secure instead of participating in yield programs.

DAI’s comments come against a backdrop of financial history filled with high-return promises that ended in collapse. Bernie Madoff offered investors 10% to 12% annual returns for decades before his $65 billion fraud was exposed. Similar risks surfaced during the late 1990s dot-com bubble, where expectations of over 20% disappeared with the market crash.

In 2006, subprime mortgage products rated as safe produced yields up to 15% but became central to the 2008 financial crisis. More recently, crypto lenders such as Celsius and Anchor lured investors with 12% to 20% returns before collapsing and wiping out billions.

While caution is being urged, XRP yield options are expanding. Uphold exchange confirmed progress toward launching its own XRP yield product. Meanwhile, Flare Network’s FAssets protocol enables users to mint FXRP, a decentralized version of XRP, which can be deployed in trading, lending, and stablecoin minting.

Flare is also its Firelight protocol, which will introduce stXRP with an estimated 7% annual return. In parallel, Axelar unveiled mXRP at Ripple’s Seoul 2025 event, promoting liquid staking opportunities with around 10% yields.

AT the time of reporting, XRP traded at $2.73, marking a 2.98% decline over 24 hours. Its market capitalization stood at $163.19 billion, with a fully diluted value of $273 billion. Trading activity increased, with $9.33 billion in daily volume, a 28.05% surge.

The price movement showed resistance near $2.82 and support around $2.70. However, consolidation between $2.73 and $2.77 reflected short-term uncertainty as participants reacted to heightened liquidity.