Flare (FLR) - XRP coming back into favor will cause other cryptocurrencies to grow?

In July Ripple, i.e. the issuer of the XRP token won a court battle in the USA. SEC failed to prove that a cryptocurrency is a security, so it does not need to be registered. In a week, the XRP rate increased by almost 100%, and the Flare network (FLR) and its token of the same name are closely related to it. Will it cause a big increase in that as well altcoin? We check whether there are grounds for this.

We continue the cycle of the Forex Club portal, in which we analyze and describe the largest, most valued, most interesting, most developed, advanced and also the most controversial cryptocurrency projects around the world. Today it's time for Flare - a distributed network that has been somewhat forgotten in recent months, and may come back into favor.

What is Flare?

Flare is a network that can create two-way bridges between other networks. Thanks to it, you can also combine the XRP token with smart contracts.

When Ripple created a global payment network using XRP tokens, it turned out that it could not be used everywhere. Flare Network solved this problem by enabling two-way service smart contracts using XRP. It was integrated with it Ethereum Virtual Machine (EVM) with instructions that can read smart contracts. Moreover, they do not have to be secured with the Flare token, so they do not in fact depend directly on its value. However, it cannot be free, because then the network would be vulnerable to spam attacks - free transactions could be carried out even as a joke, which would quickly overload and destabilize the network.

How does the network work?

The network is based on the FXRP token, which is the representation of the XRP token in the Flare network. It can be easily and quickly created by anyone who has XRP. Just use a smart contract for this. The collateral is, of course, other tokens that are placed for arbitrage purposes (for which a fee is charged, of course), which translates into virtually immediate maintenance of a 1:1 price link between XRP and FXRP.

Thanks to the existence of FXRP, which is a de facto XRP clone, Flare can easily implement any functionality of any smart contracts in networks, even those that are formally not natively supported.

Thanks to this, Flare is a bridge connecting virtually any network and any smart contracts, supported by the global hegemon, which is undoubtedly Ripple - today the 5th cryptocurrency in the world with a capitalization exceeding USD 32 billion.

Flare cryptocurrency quotes

Flare - at least for now - remains in the deep shadow of its big brother. But will it come out with fanfare? Time will tell. For now, the cryptocurrency has not benefited from the huge increase in the XRP rate, because it is difficult to call the price 20% higher, with almost 100% in the XRP rally. Today, there is also no point in comparing the capitalization of both facilities.

As of August 8, 2023, FLR tokens can be traded on 43 cryptocurrency exchanges around the world, and soon it should also be available on Binance. You currently have to pay USD 0,014 for each of them, which, with the supply of 20 tokens, translates into over USD 723 million in market capitalization. A maximum of 965 tokens will be in circulation. The peak of quotations took place on January 733, 302, when FLR was valued at USD 101.