XRP Today News: Hyperliquid Launches XRP Spot Trading While ETF Progress Stalls, XRP Falls Below $2.2

The XRP ecosystem has recently achieved significant progress: Flare Network’s cross-chain asset FXRP has officially launched on the high-performance derivatives protocol Hyperliquid, marking the first implementation of order book-based XRP spot trading, opening a new gateway for XRP into the decentralized finance (DeFi) world. On the other hand, the competitive landscape for XRP spot ETFs has shifted, as Morgan Stanley submitted applications for BTC and SOL ETFs but excluded XRP. Additionally, WisdomTree withdrew its XRP ETF application, putting market sentiment under pressure and causing the price to fall back to around $2.1653.

Analysts believe that in the short term, XRP’s price is influenced by ETF news, but the upcoming key review of the U.S. “Market Structure Act” on January 15, sustained strong inflows into XRP ETFs, and substantial expansion of DeFi use cases together form a multi-layered narrative foundation for XRP to challenge its all-time high of $3.66 in 2026.

Hyperliquid Launches XRP Spot Trading: A Paradigm Upgrade for DeFi Liquidity

For a long time, XRP holders faced a dilemma: while the asset’s utility in cross-border payments and other areas is significant, there was a lack of efficient, in-depth trading venues within the native DeFi ecosystem. This situation was broken with the launch of FXRP spot trading on Hyperliquid. Flare Network, through its FAssets system and LayerZero’s OFT standard, creatively introduced XRP into the broader blockchain world as a cross-chain wrapped asset FXRP. The launch of FXRP/USDC spot trading on Hyperliquid is not only the exchange’s first XRP spot product but also marks XRP’s first trading implementation within a true on-chain order book model.

This technical integration carries far more significance than simply “adding a new product.” For traders, Hyperliquid’s on-chain order book model promises narrower spreads, deeper liquidity, and professional trading tools, aiming to compete with traditional automated market maker (AMM) models, especially during high-activity trading periods. Its design targets an “institutional-grade” experience, striving to reduce slippage during large trades. Flare officials note that this effectively bridges the long-standing gap between active XRP derivatives markets and insufficient spot liquidity, providing a foundation for complex strategies such as hedging and arbitrage.

For the entire XRP ecosystem, this is a crucial step toward “programmable, multi-chain financial assets.” Users can now easily bridge XRP to FXRP via Flare, trade on Hyperliquid, and then bridge back to the XRP ledger or participate in other DeFi activities within the Flare ecosystem. This seamless experience transforms XRP from a relatively static settlement asset into an active capital that can generate yield and be traded across multiple smart contract platforms. As FXRP minting volume grows, its supply will inject vitality into all liquidity markets based on Flare, creating a positive feedback loop.

From an industry perspective, Hyperliquid’s collaboration with Flare demonstrates a new paradigm for asset issuance and liquidity provision. It no longer relies solely on a single-chain closed ecosystem but uses cross-chain interoperability protocols to efficiently channel liquidity of established assets into high-performance trading environments. This may indicate that, in the future, the DeFi competition for mainstream assets will focus more on underlying architecture performance and cross-chain user experience.

ETF Landscape Changes and Regulatory Outlook: Short-term Pain and Long-term Narratives

While XRP is making great strides in DeFi, its entry point into traditional financial markets—the spot ETF track—has encountered unexpected setbacks. At the start of the new year, Wall Street giant Morgan Stanley surprisingly submitted applications for BTC and SOL spot ETFs but excluded XRP. This decision contrasts sharply with market data: since the listing of the first XRP spot ETF (XRPC) on November 14, 2023, approximately $1.25 billion has flowed into such products; during the same period, US SOL spot ETFs saw net inflows of about $801 million, while Bitcoin spot ETFs experienced net outflows of around $1.8 billion. Morgan Stanley’s “oversight” has undoubtedly dampened the spirits of investors optimistic about institutionalizing XRP.

Meanwhile, veteran asset manager WisdomTree withdrew its S-1 filing for an XRP spot ETF. Although reasons were not specified, this may reflect the competitive pressure faced by latecomers in a landscape where Canary Capital, Bitwise, Franklin Templeton, and Grayscale have already established “first-mover advantages.” Bloomberg Intelligence senior ETF analyst Eric Balchunas commented that Morgan Stanley’s move is a “smart play” to develop its own brand ETF business using large advisory client assets, which could inspire other mainstream financial institutions to follow suit. However, focus still appears to be primarily on BTC and SOL. These events collectively caused XRP to encounter profit-taking above the key psychological level of $2.2, leading to two consecutive days of decline.

However, the market’s short-term emotional fluctuations may conceal more important long-term positive developments. All eyes are on January 15, when the U.S. Senate Banking Committee and Agriculture Committee will jointly hold a “mark-up” review of the crucial “Market Structure Act.” This legislation, aimed at providing a clear regulatory framework for digital assets, is widely regarded as a watershed moment for the industry. XRP’s price is highly sensitive to legislative progress: on July 17, 2023, when the bill was passed in the House of Representatives, XRP surged 14.69% in a single day; on December 31, 2023, after the Senate Banking Committee announced the review on January 15, XRP rose 33% over the following days, reaching a recent high of $2.4151.

Key Data Comparison of XRP Spot ETF Fund Flows (as of early January 2026)

• Total net inflow of XRP spot ETFs: approximately $1.25 billion since November 14, 2025.
• Total net inflow of SOL spot ETFs: approximately $801 million since October 2025.
• Total net inflow of Bitcoin spot ETFs (same period): net outflow of about $1.8 billion since November 14, 2025.
• 21Shares XRP ETF net inflow: approximately $39.07 million since listing (showing significant first-mover advantage).

Therefore, the current price correction can be interpreted as a “shakeout” driven by short-term ETF negative news before the arrival of major regulatory catalysts. The strong ETF fund inflow data already demonstrate genuine and robust market demand. Once the “Market Structure Act” makes substantial progress in the Senate, it will clear the largest institutional hurdles for the entire crypto industry, especially for assets like XRP that have long been plagued by regulatory uncertainty. At that point, institutional capital channels will become more accessible, and the current pessimism caused by individual institutional choices may quickly reverse.

Price Analysis and Bull-Bear Dynamics: Technical Pressure and Fundamental Support

As of January 7, XRP closed at $2.1653, down 5.97 intraday, breaking below the 200-day exponential moving average (EMA), but temporarily holding above the 50-day EMA (around $2.0719). This technical pattern sends mixed signals: the short-term trend appears somewhat positive as the price remains above the 50-day moving average, but the medium- to long-term trend faces pressure after breaking below the 200-day EMA (around $2.3437). However, in the crypto market, strong fundamental narratives often dominate or even reverse technical signals.

The current market focus for bulls and bears is clear. The bears’ main arguments are: technical weakness, short-term ETF negative sentiment suppressing mood, and XRP showing higher beta during market corrections (larger declines). If the price effectively breaks below the $2.0 psychological and support level, it could further decline to $1.75 or even $1.50, confirming a deeper correction trend.

The bulls’ confidence stems from the solid fundamentals outlined earlier:

1. Regulatory catalysts imminent: The January 15 bill review could be a game-changer.
2. Demand validation: Over $1.25 billion in XRP ETF net inflows is the strongest proof of institutional interest, far beyond short-term sentiment.
3. Use case expansion: The launch of spot trading on Hyperliquid is a major breakthrough for XRP in DeFi, increasing its utility as an income-generating asset and trading medium.
4. Macro environment: Expectations of the Fed starting a rate-cut cycle in 2026 remain, generally favorable for risk assets.

Therefore, analysts generally believe that as long as XRP stays above $2.0, the current correction is a healthy technical retracement, building momentum for the next rally. The primary target is to regain and stabilize above the 200-day moving average; achieving this could lead to another challenge of the $2.5 resistance. In the medium term (4-8 weeks), driven by regulatory clarity and DeFi narratives, reaching $3.0 is a plausible goal. In the longer term (8-12 weeks), if the “Market Structure Act” passes and the rate-cut cycle begins, revisiting the $3.66 all-time high and pushing further toward $5.0 could become the mainstream narrative.

Future Outlook: Ecosystem Evolution and Macro Resonance Opportunities and Risks

Looking ahead to 2026, XRP’s trajectory will no longer solely depend on a single payment narrative or the outcome of legal cases but will be the result of the resonance of ecosystem evolution, traditional financial acceptance, and macroeconomic cycles.

First, the Flare ecosystem and broader DeFi integration will be growth engines. The Hyperliquid launch is just the beginning. FXRP, as a cross-chain bridge, is expected to connect with more public chains and DeFi protocols in the future. If lending, staking, yield aggregation, and other applications based on Flare and FXRP flourish, they will form a strong value capture cycle, attracting more XRP from dormant wallets into yield-generating circulation, fundamentally reducing circulating supply pressure and creating new buying demand. Investors should closely monitor on-chain indicators such as FXRP minting volume and total value locked (TVL) across major DeFi protocols, which will serve as leading indicators of ecosystem success.

Second, regulatory “boots” landing will open valuation space. Regardless of the final version of the “Market Structure Act,” any substantial progress toward clear regulation will greatly reduce XRP’s “regulatory discount.” Once the legal framework is clarified, the obstacles for mainstream financial institutions (not just Morgan Stanley) to issue or recommend XRP-related products will be significantly lowered. At that point, the seemingly negative “being overlooked” may quickly turn into a rush to buy in.

Finally, macroeconomic and monetary policy factors are crucial beta drivers. The Fed’s interest rate path and dollar liquidity changes will impact all risk assets. If the rate-cut cycle begins as expected, capital seeking yield globally will become more active, benefiting the entire crypto market. At the same time, be alert to black swan events like a policy shift by the Bank of Japan, which could trigger a wave of global arbitrage unwinding, causing short-term shocks to high-volatility crypto assets.

Operationally, for long-term investors, the current price correction driven by ETF short-term noise may be an opportunity to increase positions amid strong fundamentals, with key risk points set below $2.0. For short-term traders, focus should be on developments around the U.S. Senate before and after January 15, weekly XRP spot ETF fund flow data, and whether the price can quickly recover the 200-day moving average. XRP’s 2026 journey has already begun; it is proving its value both in the deep waters of decentralized finance and in the traditional financial arena. Its path will be volatile, but its narrative dimensions are richer than ever before.