Recent findings from DefiLlama have revealed that an impressive 90% of the circulating supply of FXRP—Flare’s token linked to XRP—is actively engaged in decentralized finance (DeFi) protocols. This report sheds light on the current adoption trends, technological advancements, and economic landscape surrounding the Flare network.
Notably, approximately 129 million out of a total 145 million FXRP tokens in circulation are utilized in various DeFi applications. The data showcases the increasing preference for XRP-based assets in financial services such as lending and borrowing.
Launched in September 2025, FXRP allows XRP holders to explore DeFi opportunities through Flare’s FAssets system, positioning Flare as an Ethereum Virtual Machine-compatible Layer 1 blockchain that emphasizes decentralized data infrastructure.
FXRP Dominantly Used in Lending Markets
The predominant application of FXRP tokens is within lending markets, with significant activity noted across platforms like Morpho and Kinetic on Flare, in addition to Morpho on Ethereum and Euler on Monad. FXRP serves primarily as collateral, enabling holders to access loans without liquidating their XRP holdings, thus retaining investment exposure while obtaining liquidity.
For example, a recent activity report from Sentora’s RLUSD vault on Morpho indicated that 10.6 million FXRP tokens were backing $7.9 million of RLUSD supplied in September, showcasing the asset’s role beyond typical token transfers. The report also highlights a notable expansion in FXRP’s cross-chain adoption, with around 20 million tokens currently deployed outside of Flare, marking a fivefold increase since July.
As an Omnichain Fungible Token issued through LayerZero, FXRP has now extended its reach across seven different networks. It has also established itself as the first XRP spot trading pair on HyperCore, further expanding its utility.
Flare Data Connector: A Revenue Growth Driver
In addition to FXRP’s DeFi applications, the report emphasizes significant developments in Flare’s data infrastructure, particularly the revenue generated from the Flare Data Connector. Since the introduction of FIP.16, the connector’s fees have emerged as the fastest-growing source of revenue, representing 45% of Flare’s total protocol earnings.
The report also observed shifts in staking behaviors, noting that the share of FLR represented by directly staked tokens increased from 32% to 46% between April and August. This change is attributed to a July hard fork that enhanced the incentives for direct staking.
Future Prospects: Confidential Computing and Bitcoin Integration
Looking to the future, Flare is advancing towards the development of Flare Confidential Compute (FCC), aimed at enabling smart contracts to utilize private institutional data without compromising sensitive information. The initial application of this technology is live on the Songbird canary network, catering to proof of reserves for Hex Trust’s USDX stablecoin.
The potential of FCC is noted to extend beyond traditional data feeds, with DefiLlama suggesting it could function similarly to an oracle for institutional information, paralleling how FTSO operates for public price data.
As Flare prepares for significant milestones, including the launch of its FBTC product for Bitcoin integration and the mainnet rollout of Confidential Computing, the network appears poised to broaden its appeal and attract widespread institutional engagement in the DeFi space.
