DeFiLlama: Close to 90% of FXRP supply locked in DeFi

• Almost 90% of circulating FXRP supply is currently utilized across various decentralized finance protocols.
• Fees generated by the Flare Data Connector now represent 45% of total protocol revenue.
• Upcoming initiatives include Bitcoin integration and the mainnet launch of confidential computing.

A recent DefiLlama analysis reviewing the blockchain network’s adoption, underlying technology, and tokenomics reveals that nearly 90% of the circulating supply of FXRP—Flare’s XRP-focused token—is actively deployed across decentralized finance (DeFi) platforms.

Out of 145 million FXRP tokens currently in circulation, the study discovered that roughly 129 million are deployed throughout various decentralized financial applications.

These findings underscore the increasing adoption of XRP-linked assets within decentralized borrowing, lending, and other financial services.

Debuting in September 2025 via Flare’s FAssets mechanism, FXRP was created to grant XRP holders access to broader decentralized finance opportunities.

Flare functions as an Ethereum Virtual Machine-compatible Layer 1 blockchain centered around decentralized data architecture.

Lending markets account for the largest FXRP deployment

Decentralized lending markets constitute the primary utilization for deployed FXRP, with activity taking place across Morpho and Kinetic on Flare, Morpho on Ethereum, and Euler on Monad.

A substantial portion of the token supply serves as collateral, enabling holders to secure loans against their XRP holdings rather than liquidating them.

Consequently, investors gain a method for obtaining liquidity while maintaining exposure to the underlying asset.

The analysis spotlighted activity within Sentora’s RLUSD vault on Morpho, where 10.6 million FXRP tokens supported $7.9 million of supplied RLUSD during late September.

Such metrics demonstrate that FXRP is utilized for more than basic token transfers, with participants integrating the asset directly into lending markets and alternative financial mechanisms.

Furthermore, cross-chain expansion has surged. Roughly 20 million FXRP tokens now operate outside of the Flare network, marking a fivefold increase since July.

Distributed as a LayerZero Omnichain Fungible Token, FXRP has scaled across seven distinct networks.

Additionally, the asset established itself as the first XRP spot trading pair on HyperCore in January, as stated in the announcement.

Flare data fees become its fastest-growing revenue source

Apart from the XRP-centric decentralized finance ecosystem, the analysis explored the progression of Flare’s data infrastructure alongside its impact on network earnings.

Following the integration of FIP.16, fees generated by the Flare Data Connector have expanded at a faster pace than any alternative source of protocol income.

Responsible for verifying external events occurring on separate blockchain networks, the connector currently generates 45% of Flare’s aggregate protocol revenue.

Moreover, the study highlighted a transformation in FLR staking behavior.

Between the months of April and August, the proportion of staked or delegated FLR comprising directly staked tokens climbed from roughly 32% to 46%.

This adjustment materialized after a July hard fork that increased the weight assigned to direct staking.

Altogether, these trends indicate that Flare’s data-centric offerings are evolving into an essential element of network economics, working alongside the expansion of applications built around XRP.

Confidential computing and Bitcoin integration are next milestones

Flare is also advancing Flare Confidential Compute (FCC), a framework engineered to enable smart contracts to validate computations originating from private institutional information without revealing confidential details.

Its initial institutional deployment is currently active on the Songbird canary network, where it powers proof of reserves for Hex Trust’s USDX stablecoin.

DefiLlama characterized the potential capability of this technology as stretching past traditional data feeds.

The analysis noted that as adoption scales, FCC “becomes closer to an oracle primitive for private data, playing the role for institutional information that FTSO plays for public prices.”

Looking forward, the publication pinpointed the upcoming FBTC product designed for Bitcoin connectivity, the mainnet rollout of Confidential Compute, and heightened protocol income as vital milestones for Flare.

Advancements across these goals will help dictate whether the network can successfully broaden its data infrastructure past XRP-centered uses and drive greater institutional engagement within decentralized finance.

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