Curve Finance has launched Llamalend v2 on Optimism with support for isolated lending markets and non-crvUSD borrowing pairs, opening the first phase of a lending system upgrade ahead of a planned Ethereum mainnet rollout later this year.

According to Curve Finance, the new version removes a key limitation from Llamalend v1, which was built around crvUSD as the borrowed asset. Markets can now be created using supported assets on both sides of a lending pair, subject to governance approval, allowing collateral and borrowed assets to be selected without requiring crvUSD.

The deployment begins on Optimism, where Curve said users will initially be able to access three isolated markets: ETH against wstETH, wstETH against USDC, and WBTC against USDC.

All three markets will launch with borrow caps set at zero, meaning users can lend assets but cannot borrow until governance approves debt limits through a DAO vote expected to take about seven days.

LP tokens can now support borrowing activity

Alongside the expansion beyond crvUSD markets, Curve has introduced support for LP tokens as collateral. According to the protocol, liquidity providers can deposit Curve LP tokens, continue earning trading fees from liquidity pools, and borrow against those positions simultaneously.

The update ties lending activity more closely to Curve’s exchange infrastructure. Curve said the framework could also support other productive collateral types in the future, including yield-bearing vault assets and principal tokens used in fixed-yield strategies.

Llamalend v2 retains the liquidation model introduced with the original protocol in early 2024. Rather than liquidating a position at a single price point, the system uses a liquidation range that gradually converts collateral into the borrowed asset as prices move through predefined levels.

Curve previously said the design was created to reduce concentrated liquidation pressure during periods of market stress and give borrowers more time to manage positions.

Risk controls remain separated on a market-by-market basis. According to Curve, each lending market carries its own collateral asset, borrowed asset, oracle configuration, borrowing limits, and risk parameters. Borrow caps start at zero and must receive governance approval before debt can accumulate.

LlamaRisk reviews markets before borrowing begins

For the initial rollout, Curve said LlamaRisk will review proposed collateral assets and oversee market assessments before markets move through governance. The protocol noted that isolated markets reduce the possibility of risks spreading between unrelated lending pairs.

Support for the launch includes a 250,000 OP token grant from the Optimism Foundation, according to Curve’s announcement. The incentives are expected to be distributed over roughly two months to encourage liquidity and participation.

Curve’s technical documentation also states that an initial incentives campaign will distribute 100,000 OP tokens through Merkl across the first markets.

Before enabling borrowing, Curve said it chose to deploy on Optimism to observe contract behavior, integrations, and user activity in a lower-risk environment. A launch on the Ethereum Mainnet is expected during the second half of the year.

The rollout follows other recent lending-related initiatives from Curve. As previously reported by crypto.news, the protocol introduced a bad-debt recovery framework for LlamaLend markets that converts distressed lending positions into tradable on-chain claims.

Curve founder Michael Egorov described that mechanism as an investment tool that could eventually be applied to other markets if successful.

XRP’s on-chain activity has cooled dramatically since its 2025 surge, according to Glassnode’s latest on-chain metrics. The 90-day average of total XRP network fees has plunged to about 500 XRP from roughly 5,900 XRP in February, a 91.5% drop that points to a sharp slowdown in on-chain demand after the mid-2025 price spike that briefly pushed XRP above $3. The pullback in on-chain activity mirrors a broader shift in trader behavior and market structure after a period of intense speculation.

Compounding the view of a cooling market, XRP’s 90-day realized profit-to-loss ratio has collapsed to 0.38, suggesting that more coins are being realized at losses than profits on-chain. At the height of its price run in January and July 2025, when XRP traded near $3.40, the ratio reached around 50 as profit-taking dominated flows. The current regime, by contrast, signals a possible capitulation environment where selling pressure is less about wholesale distribution by big holders and more about risk-off sentiment and leverage-driven liquidations.

Key takeaways

• On-chain demand for XRP has slumped sharply since the 2025 rally, with the 90-day average of network fees falling 91.5% to around 500 XRP.
• The 90-day realized profit-to-loss ratio has fallen to 0.38, indicating losses are being realized more than profits as investors exit positions.
• Exchange-related activity shows a cooling dynamic: large XRP transfers to centralized venues like Binance have declined since the 2025 peak, hinting at a shift away from mass whale distribution.
• A defined accumulation zone between roughly $1.00 and $0.65 is taking shape, anchored by technical levels such as a fair value gap and a high-volume node around $0.50–$0.65.
• Despite near-term weakness, a subset of analysts maintains a longer-term bullish thesis, with a target range of about $15–$18, underscoring the ongoing debate over XRP’s eventual fundamental trajectory.

On-chain activity and what it signals

Glassnode’s analysis stresses that XRP’s on-chain activity has cooled substantially after the explosive run that pushed the token above $3 in the first half of 2025. The drastic drop in the 90-day fee average—from thousands of XRP to a few hundred—suggests a cooling in the network’s transaction activity and a retrenchment of speculative demand. In practical terms, the fee data are often treated as a proxy for everyday transactional use on the XRP ledger, and the current readings imply a lull in users and a normalization after a period of exuberant activity.

Observers are watching whether this cooling translates into a more stable or even depressed price regime. The price action that followed the mid-2025 spike created a technical environment where traders now see a broad band between $1.00 and $0.65 as a critical zone. The question is whether buyers will accumulate enough demand to defend that range or if the market will test lower levels in a broader risk-off cycle.

Profit dynamics: from profit-taking to capitulation?

The realized profit-to-loss ratio offers a window into how investors are managing their XRP positions as market conditions shift. The ratio’s plunge to 0.38 means that for every $1 of realized profit, approximately $2.63 of losses have been realized, a pattern often observed when a market moves from a distribution phase into capitulation, albeit without the same intensity of selling by large holders as in prior cycles.

For context, the ratio reached about 50 during the weeks when XRP hovered near $3.40 in 2025, indicating heavy profit-taking at those price points. The reversal to a low ratio is consistent with a broader shift away from aggressive on-chain profit-taking and toward a more cautious posture among market participants. While this doesn’t preclude a return to stronger hands pushing prices higher, it does highlight a renewed emphasis on risk controls and stop-out dynamics in a market that has already experienced substantial speculative fervor.

Whale flows, exchanges, and the bigger picture

On the exchange-front, data from CryptoQuant offers a complementary view to Glassnode’s on-chain activity. Analysts have flagged a decline in transfers of XRP to major exchanges, particularly among the higher-cohort holders. Notably, inflows of 100,000–1,000,000 XRP and those above 1,000,000 XRP have weakened since the 2025 peak, with declines of about 15% and 20%, respectively, since October 2025. The trend points to a reduction in the step-like distribution that often accompanies top-of-cycle sell-offs.

Analysts caution that the near-term price weakness appears more connected to leverage-driven liquidations and a risk-off mindset than to a broad, coordinated dump by large holders. In other words, while large holders are still active participants in the space, their activity does not appear to be the dominant force shaping XRP’s price action at this juncture. The combination of fading on-chain demand and shifting exchange dynamics creates a nuanced backdrop for traders who must weigh potential liquidity gaps against the possibility of renewed demand in a broader crypto-market upcycle.

In terms of regional and behavioral signals, the XRP ecosystem still shows a classic pattern: from a few clear acceleration points to a more cautious phase where traders hunt for lower-risk entries. CryptoQuant’s analysis highlights how inflows to exchanges from large holders have cooled, which historically has preceded or accompanied broader corrections in the XRP market. Yet, as ever in volatile crypto markets, these trends must be contextualized within macro conditions, liquidity cycles, and evolving regulatory dynamics that continue to shape investor risk appetite.

Technical map: where buyers are watching

From a chart perspective, XRP has been consolidating within a zone that many traders view as a potential bottoming region. The weekly price action points to a cluster of technical levels between $1.00 and $0.65. A notable fair value gap created during XRP’s late-2024 rally spans roughly $0.63 to $1.00, and price has shown movement back toward this zone after breaching the $1.40 level on the downside. Visible-range volume profile data indicate relatively light activity below current prices until a high-volume node sits around $0.50–$0.65, suggesting a meaningful area of liquidity in that neighborhood.

The point of control—the price area with the most traded volume—sits near $0.52–$0.55, reinforcing the idea that this range has become a magnet for immediate supply and demand. In addition, XRP’s five-year ascending trendline projects to intersect near $0.60–$0.65 in the coming months, a confluence of support that could anchor a potential bounce if macro conditions support renewed risk appetite.

On the community front, market observers have begun highlighting the $0.60–$0.65 band as a practical accumulation zone. Traders such as Crypto Patel have identified $1.00–$0.60 as a preferred range to accumulate, while others like Javon Marks continue to model a longer-term bull scenario with a target of roughly $15–$18 per XRP—a move that would imply roughly 1,100% upside from current levels. While such a trajectory remains contingent on a sustainable macro and market-driven re-pricing of risk, the convergence of on-chain, exchange, and technical signals keeps the narrative alive for those investors betting on a reacceleration in XRP’s adoption and liquidity cycle.

What to watch next

As the market digests a quieter on-chain environment and a shift in exchange activity, XRP traders will be closely watching whether demand can re-emerge around key support around $0.60–$0.65 and whether buying interest can sustain a move back toward the $1.00 threshold and beyond. The overarching question remains whether the longer-term bull thesis can absorb another round of macro shocks or if a fresh catalyst—regulatory clarity, improved liquidity conditions, or institutional participation—could reframe XRP’s trajectory in 2026.

Brad Garlinghouse has endorsed claims that Wall Street firms are increasingly pursuing the same institutional finance strategy that XRP was once criticized for supporting.

According to comments shared on X, Ripple CEO Brad Garlinghouse responded with a one-word endorsement after Flare co-founder Hugo Philion argued that many parts of the crypto industry are now embracing the bank-focused approach that XRP and Ripple promoted from the beginning.

The exchange began after an X user highlighted remarks Philion made during a recent interview discussing Ripple’s long-standing role in digital payments. The user wrote that parts of the crypto sector had mocked XRP’s institutional vision in the past but were now attempting to replicate it. Garlinghouse replied simply, “True.”

Blockchain.com has launched 24/7 perpetual trading for institutional clients through its OTC desk, offering around-the-clock exposure to stocks, equity indices, commodities, foreign exchange markets and pre-IPO companies.

The rollout includes a SpaceX-linked perpetual contract, allowing eligible investors to take positions tied to the aerospace company’s anticipated public listing. According to the company, the contract is already live through its OTC desk.

Blockchain.com said the new service is intended for institutions seeking continuous market access outside traditional trading hours. The company said clients can use the platform to hedge or adjust positions across multiple asset classes, including on weekends when most traditional markets are closed.

The firm cited use cases including options desks managing exposure, macro funds trading across asset classes and investors seeking exposure to anticipated public listings.

Blockchain.com’s announcement tweet Tuesday to its 1.3 million followers.
Source: Blockchain.com on X.com

The move follows Blockchain.com’s April launch of perpetual futures trading through its self-custody wallet. At the time, the company said it planned to expand beyond crypto markets into stocks, commodities and foreign exchange.

In May, Blockchain.com confidentially filed paperwork with the US Securities and Exchange Commission for its own proposed initial public offering. 

Related: Senator Elizabeth Warren questions Elon Musk about X Money

Pre-IPO trading emerges as a new crypto battleground

Bloomberg reported in April that SpaceX had confidentially filed for an IPO and was considering a valuation of more than $1.75 trillion, potentially making it one of the largest public listings in US history. Anticipation around the company’s expected June 12 market debut has since fueled a wave of pre-IPO products from crypto exchanges.

Binance last month introduced pre-IPO perpetual futures tied to private companies, beginning with a SpaceX-linked contract settled in USDT. The derivatives allow traders to speculate on a company’s expected valuation before and after an IPO without owning the underlying shares.

Last week, crypto exchange Kraken announced that SpaceX would become the first company offered through its xStocks IPO Access platform, allowing eligible users in more than 110 markets to participate through tokenized shares backed 1:1 by the underlying stock. Once issued, the tokens can be traded around the clock on Kraken and other xStocks-supported platforms.

Bybit followed days later, indicating it would also offer access through xStocks, marking the first IPO available through the exchange’s new tokenized equity program.

Source: SpaceX

Coinbase has also launched pre-IPO markets for international users through a perpetual futures contract tied to SpaceX’s estimated private-market valuation. The USDC-settled product is designed to convert into a post-IPO contract if the company ultimately begins trading on public markets.

Investor demand for the offering has continued to accelerate. On Tuesday, Reuters reported that the IPO was running three and a half to ​four times oversubscribed, with demand exceeding $250 billion for an offering expected to raise $75 billion.

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