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XRP price reaction muted even as new income-generation opportunity appears

XRP's price action aligns with broader market trends, but, contrarily, negative social sentiment may signal a potential rebound.

Dec 24, 2025, 2:25 p.m.
Trading screen
XRP drops despite new yield offering for holders. (Yashowardhan Singh/Unsplash modified by CoinDesk)

What to know:

  • XRP's price fell 1.7%, in line with the broader crypto market
  • A new vault for generating returns, earnXRP, simplifies DeFi strategies and pays yields in XRP.
  • Negative social sentiment may signal a potential rebound, according to Santiment.

Payments-focused cryptocurrency is little changed in 24 hours, in line with the broader crypto market, even after the introduction of a new product that allows holders to earn extra money without selling their tokens.

On Tuesday, Upshift, Clearstar and Flare unveiled earnXRP, a vault designed to make it easier for XRP holders to generate returns on top of their spot market holdings. The new offering helps XRP holders bypass the complexities of managing DeFi strategies and pays out yield denominated in XRP.

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Upshift is a platform dedicated to providing toolkitx to protocols and wallets to develop DeFi earn vaults. Clearstar is an on-chain risk curator that designs institutional-grade DeFi vaults and Flare is a layer 1 blockchain designed for data intensive use cases. Fintech firm Ripple uses XRP to facilitate cross-border transactions.

How earnXRP Works

Users deposit Flare's FXRP, a 1:1, over-collateralized representation of XRP that conforms to Ethereum's ERC-20 token standard on Flare, into a vault that deploys capital across varied strategies. In return, users receive earnXRP, a receipt token representing their share in the vault and the accumulated XRP-denominated yield.

This time of year typically sees low investor participation and thin liquidity, leading to erratic price moves.

XRP could see a year-end bounce as social sentiment turns decisively negative — a contrarian signal that has historically preceded recoveries, according to Santiment.

"XRP is seeing far more negative social media commentary than average. Historically, this setup leads to price rises. When retail has doubts about a coin's ability to rise, the rise becomes significantly more likely," analytics firm Santiment said on X.

As the poet Charles Bukowski said, the masses are always wrong.

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