 ▲ Virtual Asset |
An analysis has suggested that the key factor determining the long-term value of virtual assets is not simply brand recognition or network fees, but the creation of tangible economic value.
In a report on March 7 (local time), The Crypto Basic stated that Flare Networks CEO Hugo Philion shared his views in an interview with Yellow Media on the essential conditions required for virtual asset tokens to survive in the long term. Philion pointed out that many tokens still rely solely on their identity as base assets of a blockchain or on fees generated from network activity.
“The existing model helped establish the virtual asset ecosystem in its early stages. However, it has clear limitations in generating long-term economic value,” Philion said. He emphasized that tokens must go beyond merely being used as network gas fees and develop organic economic value by playing meaningful roles in real economic activities. His remarks are interpreted as underscoring that securing practical use cases, rather than relying on speculative elements, will determine the future of virtual assets.
Leader Alpha, an expert in the XRP community, analyzed that Philion’s comments offer significant implications for XRP’s future trajectory. While virtual assets lacking practical use cases face the risk of being phased out, Leader Alpha գնահատed that XRP is strengthening its utility through integration with the Flare ecosystem, positioning itself advantageously for the next bull market. In particular, he viewed positively XRP’s expansion beyond cross-border payments into the decentralized finance (DeFi) sector.
Flare Network has implemented concrete measures to expand the functionality of the XRP Ledger. Unlike the XRP Ledger, where transaction fees are burned, Flare provides additional earning opportunities for XRP holders through its asset system. Users can deposit their XRP into Flare vaults and mint FXRP of equivalent value, enabling them to generate interest income across various DeFi protocols.
Since the introduction of this system, participation from XRP holders has steadily increased. Since September 2025, more than 123 million XRP have been bridged to Flare and issued as FXRP, with approximately 102.2 million FXRP currently deposited across various DeFi projects. This reflects growing demand among investors to actively manage their assets rather than simply holding them. Through its integration with the Flare ecosystem, XRP is evolving beyond its original function as a payment asset into a multifunctional infrastructure asset capable of generating yield.
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