DefiLlama report: nearly 90% of FXRP supply is locked in DeFi

• Nearly 90% of circulating FXRP supply is deployed across DeFi protocols.
• Flare Data Connector fees now account for 45% of protocol revenue.
• Flare plans Bitcoin integration and mainnet deployment of confidential computing.

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 by DefiLlama 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.

The findings highlight 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.

Flare 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 across Morpho and Kinetic on Flare, Morpho on Ethereum and Euler on Monad.

Much of the token supply is used as collateral, allowing holders to borrow against their XRP exposure instead of selling their holdings.

This creates a way 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 supplied in late September.

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 also expanded. Approximately 20 million FXRP tokens are now deployed outside Flare, representing a fivefold increase since July.

Issued as a LayerZero Omnichain Fungible Token, FXRP has expanded to seven networks.

The token also became the first XRP spot pair on HyperCore in January, according to the announcement.

Flare data fees become its fastest-growing revenue source

Beyond its XRP-focused DeFi ecosystem, the report examined 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 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 a more significant component of its network economics, alongside the 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 exposing sensitive information.

Its first institutional application is live on the Songbird canary network and supports proof of reserves for Hex Trust’s USDX stablecoin.

DefiLlama described the potential role of the technology as expanding beyond conventional data feeds.

The report stated that as applications grow, FCC “becomes closer to an oracle primitive for private data, playing the role for institutional information that FTSO plays for public prices.”

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.