Nearly 90% of the circulating supply of FXRP, Flare's XRP-focused token, is deployed across decentralised finance (DeFi) protocols, according to a new report from DefiLlama, a widely used analytics platform for tracking activity across DeFi, examining the blockchain network's adoption, technology and token economics.

The analysis found that approximately 129 million of the 145 million FXRP tokens in circulation were deployed across DeFi applications, a finding that underscores the growing use of XRP-linked assets in lending, borrowing and other decentralised financial services.

FXRP launched in September 2025 through Flare's FAssets system, which enables XRP holders to access DeFi opportunities. The product addresses a structural gap: XRP originates on the XRP Ledger, which does not support the general-purpose smart contracts that power lending and borrowing on Ethereum-compatible chains, historically leaving holders without native access to such services. Flare itself is an Ethereum Virtual Machine-compatible Layer 1 blockchain focused on decentralised data infrastructure.

Lending markets account for the largest FXRP deployment

Lending markets represent the largest use of deployed FXRP, with activity recorded across Morpho and Kinetic on Flare, Morpho on Ethereum and Euler on Monad, an EVM-compatible Layer 1. Much of the token supply is used as collateral, allowing holders to borrow against their XRP exposure rather than selling their holdings. This creates a route for investors to access liquidity while retaining exposure to the underlying asset.

The report highlighted activity in Sentora's RLUSD vault on Morpho, where 10.6 million FXRP tokens backed $7.9 million of RLUSD, Ripple's dollar-pegged stablecoin, supplied in late September. Taken together, the figures indicate that FXRP is being used beyond simple token transfers, with holders deploying the asset into lending markets and other financial applications.

Cross-chain adoption has expanded as well, extending the token's reach beyond its home network. Approximately 20 million FXRP tokens are now deployed outside Flare, representing a fivefold increase since July. Issued as a LayerZero Omnichain Fungible Token, a standard built for tokens that circulate natively across multiple blockchains, FXRP has expanded to seven networks. According to the announcement, the token also became the first XRP spot pair on Hyperliquid's HyperCore in January.

Flare data fees become its fastest-growing revenue source

Beyond its XRP-focused DeFi ecosystem, the report also examined the development of Flare's data infrastructure and its to network revenue. Since the implementation of FIP.16, fees generated by the Flare Data Connector have grown faster than those of any other protocol revenue source. The connector verifies events occurring on other blockchain networks and now accounts for 45% of Flare's total protocol revenue.

The report also identified a change in FLR staking patterns. Between April and August, the share of staked or delegated FLR represented by directly staked tokens rose from approximately 32% to 46%. The shift followed a July hard fork that gave greater weight to direct staking.

These developments suggest that Flare's data-related services are becoming an increasingly significant component of the network's economics, running alongside the rapid growth of applications built around XRP.

Confidential computing and Bitcoin integration are next milestones

Flare is also developing Flare Confidential Compute (FCC), a system designed to let smart contracts verify results derived from private institutional data without sensitive information. The design targets a known friction point: public blockchains record activity transparently by default, which sits uneasily with the confidentiality requirements institutions face when handling private data. Its first institutional application is live on the Songbird canary network, where it supports proof of reserves for Hex Trust's USDX stablecoin. Songbird serves as Flare's canary network for testing systems ahead of mainnet deployment.

DefiLlama described the technology's potential role as extending well beyond conventional data feeds. As applications grow, the report stated, FCC "becomes closer to an oracle primitive for private data, playing the role for institutional information that FTSO plays for public prices." The FTSO, or Flare Time Series Oracle, is the network's decentralised system for delivering price data.

Looking ahead, the report identified the planned FBTC product for Bitcoin integration, the mainnet deployment of Confidential Compute and higher protocol revenue as key milestones for Flare. Progress on these initiatives will help determine whether the network can extend its data infrastructure beyond XRP-focused applications and attract broader institutional participation in decentralised finance.

Source: CoinJournal