DefiLlama reports nearly 90% of FXRP supply 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.

A recent DefiLlama report analyzing the blockchain network’s technology, adoption, and token economics reveals that nearly 90% of the circulating supply of FXRP—Flare’s XRP-centered token—is actively utilized within decentralized finance (DeFi) ecosystems.

Out of the 145 million FXRP tokens currently in circulation, the study discovered that approximately 129 million are put to work across various DeFi applications.

These numbers underscore the increasing adoption of XRP-backed assets in decentralized financial services such as borrowing and lending.

FXRP made its debut in September 2025 via Flare’s FAssets framework, which opens up DeFi avenues for XRP holders.

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

Lending markets account for the largest FXRP deployment

Lending protocols command the highest share of deployed FXRP, with activity visible across Kinetic and Morpho on Flare, Morpho operating on Ethereum, and Euler situated on Monad.

A significant portion of the token supply functions as collateral, permitting holders to secure loans against their XRP holdings rather than liquidating them.

Consequently, investors gain a mechanism to tap into liquidity while keeping their exposure to the underlying asset intact.

The study specifically drew attention to activity within Sentora’s RLUSD vault on Morpho, noting that 10.6 million FXRP tokens served as collateral for $7.9 million of RLUSD supplied during late September.

Such metrics demonstrate that FXRP goes well beyond basic token transfers, finding heavy utilization in financial applications and lending markets.

Cross-chain reach has experienced growth as well. Roughly 20 million FXRP tokens currently reside outside the Flare network, marking a fivefold surge since July.

Distributed as a LayerZero Omnichain Fungible Token, FXRP has broadened its presence to a total of seven networks.

Additionally, the token secured its position as the inaugural XRP spot pair on HyperCore in January, as indicated by the announcement.

Flare data fees become its fastest-growing revenue source

Aside from its XRP-centric DeFi ecosystem, the analysis looked at the evolution of Flare’s data architecture and how it impacts network income.

Following the adoption of FIP.16, fees produced by the Flare Data Connector have expanded at a faster pace than any alternative source of protocol revenue.

The connector is responsible for validating events taking place on separate blockchain networks and currently represents 45% of Flare’s aggregate protocol earnings.

Furthermore, the publication pointed out a shift in how FLR is staked.

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 transition came in the wake of a July hard fork that assigned greater weight to direct staking models.

Altogether, these trends imply that data-driven services on Flare are turning into a more vital pillar of network economics, running parallel to the expansion of applications centered around XRP.

Confidential computing and Bitcoin integration are next milestones

Flare is also in the process of building Flare Confidential Compute (FCC), an architecture intended to allow smart contracts to verify computations drawn from private institutional information without leaking confidential data.

The initial institutional use case is already active on the Songbird canary network, providing proof of reserves for the USDX stablecoin issued by Hex Trust.

DefiLlama characterized the potential trajectory of this technology as reaching far past standard data feeds.

The report noted that as usage 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 analysis flagged the upcoming FBTC product geared toward Bitcoin integration, the rollout of Confidential Compute on the mainnet, and boosted protocol revenues as critical milestones for Flare.

Success across these ventures will help determine whether the network can scale its data infrastructure past XRP-focused use cases and pull in wider institutional engagement within decentralized finance.