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

• Close to 90% of the active FXRP supply is utilized within DeFi protocols.
• Fees from the Flare Data Connector now generate 45% of the protocol’s total revenue.
• Flare is preparing to integrate Bitcoin and launch confidential computing on its mainnet.

According to a new report by DefiLlama analyzing the blockchain’s adoption, technology, and tokenomics, almost 90% of the circulating supply of Flare’s XRP-centric token, FXRP, is currently deployed in decentralized finance (DeFi) platforms.

The study revealed that out of the 145 million FXRP tokens currently in circulation, roughly 129 million are active across DeFi applications.

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

Introduced in September 2025 through Flare’s FAssets framework, FXRP enables XRP holders to participate in DeFi markets.

Flare operates as an Ethereum Virtual Machine-compatible Layer 1 network specializing in decentralized data infrastructure.

Lending platforms drive primary FXRP usage

Lending services account for the largest share of deployed FXRP, with activity taking place on Morpho and Kinetic on Flare, Morpho on Ethereum, and Euler on Monad.

A significant portion of the token supply serves as collateral, enabling holders to borrow against their XRP position without liquidating their underlying assets.

This setup allows investors to unlock liquidity while maintaining their exposure to the asset.

The report highlighted specific activity in Sentora’s RLUSD vault on Morpho, where 10.6 million FXRP tokens secured $7.9 million in RLUSD provided near the end of September.

These metrics demonstrate that FXRP is being utilized beyond basic token transfers, with investors committing the asset to lending protocols and other financial tools.

In addition, cross-chain usage has expanded significantly, with approximately 20 million FXRP tokens now deployed off the Flare network—marking a fivefold surge since July.

Minted as a LayerZero Omnichain Fungible Token, FXRP has broadened its presence across seven distinct networks.

The announcement also noted that the token was listed as the inaugural XRP spot pair on HyperCore in January.

Flare data fees represent its fastest-expanding revenue stream

Alongside its XRP-focused DeFi growth, the report evaluated the evolution of Flare’s data infrastructure and its impact on network income.

Following the execution of FIP.16, revenue derived from the Flare Data Connector has outpaced all other protocol income streams.

Designed to validate events taking place on external blockchains, the connector currently generates 45% of Flare’s overall protocol revenue.

The analysis further pointed to shifting dynamics in FLR staking.

From April to August, the percentage of staked or delegated FLR originating from direct staking increased from roughly 32% to 46%.

This transition occurred after a July hard fork that assigned increased weight to direct staking.

Such trends indicate that data-driven services are playing a progressively vital role in Flare’s economic structure, complementing the expansion of its XRP-based ecosystem.

Confidential computing and Bitcoin integration mark upcoming targets

Flare is additionally constructing Flare Confidential Compute (FCC), a mechanism engineered to permit smart contracts to validate outputs generated from private institutional data without disclosing sensitive information.

Its initial institutional deployment is operational on the Songbird canary network, providing proof of reserves verification for Hex Trust’s USDX stablecoin.

DefiLlama described the broader potential of this technology beyond standard data feeds.

The report 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.”

Moving forward, the analysis highlighted the upcoming FBTC product aimed at Bitcoin integration, the mainnet release of Confidential Compute, and rising protocol revenue as crucial future milestones for Flare.

Progress across these initiatives will show whether the network can extend its data infrastructure past XRP-focused use cases to draw broader institutional participation into decentralized finance.