DefiLlama finds nearly 90% of FXRP circulating supply in DeFi

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

A new report from DefiLlama, which examines Flare's adoption, technology, and token economics, says that nearly 90% of the circulating FXRP supply is active across DeFi protocols.

Of the 145 million tokens in circulation, around 129 million were deployed across such applications, the analysis found.

The findings point to the rising use of XRP-linked assets in lending, borrowing and other DeFi services.

FXRP launched in September 2025 through Flare's FAssets system, a system letting XRP holders access DeFi opportunities.

Flare is a Layer 1 blockchain compatible with the Ethereum Virtual Machine, built for decentralized data infrastructure.

Lending markets largest deployment for FXRP

Deployed FXRP is mostly used in lending markets, with activity across Morpho and Kinetic on Flare, Morpho on Ethereum and Euler on Monad.

Much of the token supply serves as collateral. This lets holders borrow against their XRP exposure rather than selling their holdings.

This gives investors a path to liquidity while keeping their exposure to the underlying asset.

DefiLlama 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 data suggests FXRP is used for more than just simple transfers, with holders deploying the asset into lending markets and other financial applications.

Cross-chain usage has also expanded. Roughly 20 million FXRP tokens are now deployed outside Flare, a fivefold increase since July.

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

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

Flare data fees: fastest growing revenue stream

Alongside its XRP 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 from the Flare Data Connector have grown faster than any other protocol revenue source.

The connector verifies events on other blockchains and now makes up 45% of Flare's total protocol revenue.

A shift in FLR staking patterns was also observed by the report.

Between April and August, directly staked tokens rose from roughly 32% of staked or delegated FLR to 46%.

This shift followed a July hard fork that gave greater weight to direct staking.

These developments suggest Flare's data services are becoming a larger component of its network economics, alongside the growth of XRP-based applications.

Bitcoin integration and confidential computing on Flare's roadmap

Flare is also developing Flare Confidential Compute (FCC), a system letting smart contracts verify results 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 technology's potential role as expanding beyond standard 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 decide whether the network can extend its data infrastructure beyond XRP-focused applications and attract broader institutional participation in decentralized finance.