Nearly 90% of the circulating supply of FXRP has been deployed in DeFi protocols.
- Flare Data Connector fees currently account for 45% of protocol revenue.
- Flare plans to advance Bitcoin integration and deploy confidential computing to mainnet.
According to a new report from DefiLlama on the adoption, technology, and tokenomics of this blockchain network, nearly 90% of the circulating supply of Flare’s FXRP token, designed for XRP, has been deployed in decentralized finance (DeFi) protocols.
Analysis shows that approximately 129 million of the 145 million circulating FXRP tokens have been deployed in DeFi applications.
These findings highlight growing usage of XRP-linked assets in lending and other decentralized financial services.
FXRP was launched in September 2025 through Flare’s FAssets system, enabling XRP holders to access DeFi opportunities.
Flare is a Layer 1 blockchain compatible with the Ethereum Virtual Machine (EVM), focused on decentralized data infrastructure.
The lending market accounts for the largest share of FXRP deployment.
The lending market is the largest use case for deployed FXRP, with related activity spread across Morpho and Kinetic on Flare, Morpho on Ethereum, and Euler on Monad.
A significant portion of the token supply is used as collateral, enabling holders to borrow against their XRP exposure without selling their assets.
This provides investors with a way to gain liquidity while maintaining exposure to the underlying asset.
The report highlights Sentora's RLUSD vault activity on Morpho: as of late September, 10.6 million FXRP supported $7.9 million in supplied RLUSD.
This data indicates that FXRP is no longer being used solely for simple token transfers; holders are deploying this asset into lending markets and other financial applications.
Cross-chain adoption is also growing. Currently, approximately 20 million FXRP are deployed on networks outside Flare, a fivefold increase since July.
FXRP, issued as a LayerZero omnichain fungible token, is now available on seven networks.
According to the announcement, the token also became the first XRP spot trading pair on HyperCore in January.
Flare data fees have become its fastest-growing revenue source.
In addition to the DeFi ecosystem centered around XRP, the report also examines the development of Flare's data infrastructure and its contribution to network revenue.
Since the implementation of FIP.16, fees generated by the Flare Data Connector have grown faster than any other protocol revenue source.
This connector is used to verify events occurring on other blockchain networks and currently accounts for 45% of Flare Protocol's total revenue.
The report also notes a change in the FLR staking model.
Between April and August, the proportion of staked or delegated FLR represented by directly staked tokens increased from approximately 32% to 46%.
This change occurred after a hard fork in July, which increased the weight of direct staking.
These developments indicate that Flare’s data-related services are becoming an increasingly important component of its network economy as applications built around XRP continue to grow.
Confidential computing and Bitcoin integration are the next milestone.
Flare is also developing Flare Confidential Compute (FCC), a system designed to enable smart contracts to verify results derived from institutional private data without exposing sensitive information.
Its first institutional-grade application has launched on the Songbird Canary Network and supports Hex Trust’s USDX stablecoin reserve proof.
DefiLlama believes that the potential impact of this technology will extend beyond traditional data feeds.
The report states that as adoption grows, the FCC "will move closer to an oracle primitive for private data, playing a role in institutional information analogous to that of the FTSO in public pricing."
Looking ahead, the report lists FBTC for Bitcoin integration, the mainnet deployment of Confidential Compute, and higher protocol revenue as key milestones for Flare.
The progress of these initiatives will help determine whether the network can extend its data infrastructure beyond XRP-related applications and attract broader institutional participation in decentralized finance.