Flare

Crypto investors rarely leave money on the table if they can help it. According to fresh analytics published today by DefiLlama and provided directly by the <a target="_blank" rel="noopener noreferrer nofollow" href="https://flare.network/">Flare</a> network team, XRP holders are rushing to put their holdings to work. Out of the 145 million FXRP tokens floating in circulation, roughly 129 million (just shy of 90%) are active inside decentralized finance protocols. That is a stark turnaround from years past, when XRP sat largely quiet inside personal wallets and centralized exchanges.
Flare introduced <a target="_blank" rel="noopener noreferrer nofollow" href="https://defillama.com/research/report/how-flare-uses-data-to-expand-what-capital-can-do">FXRP</a> in September 2025 using its FAssets minting setup. The premise was straightforward: bridge traditional XRP into DeFi without forcing owners to sell their core positions. Barely a year later, that bridge is seeing heavy traffic.
<h2 id="header-0">Lending Markets Take the Lion's Share</h2>
Most of this capital ends up in credit pools. Lending platforms make up the bulk of all FXRP activity, spread across venues like Morpho and Kinetic on Flare, Euler on Monad, and Morpho on Ethereum.
Holders deposit their FXRP as collateral to pull out stablecoins or other crypto assets. It works smoothly until prices swing, since borrowing against volatile collateral always carries liquidation dangers. Still, traders are taking the plunge. <a target="_blank" rel="noopener noreferrer nofollow" href="https://defillama.com/research/report/how-flare-uses-data-to-expand-what-capital-can-do">DefiLlama</a> highlighted a vault managed by Sentora on Morpho: in late September, roughly 10.6 million FXRP stood as backing for $7.9 million in Ripple's RLUSD stablecoin.
The token refuses to stay locked inside Flare's borders. About 20 million tokens now circulate across outside blockchains, a fivefold leap since July. Built as an omnichain asset through LayerZero, FXRP currently touches seven separate networks, even becoming the inaugural spot pair on HyperCore back in January.
<h2 id="header-1">Oracles and Connectors Fuel Network Revenue</h2>
While cross-chain liquidity drives user interest, data rails are paying the platform's bills. <a target="_blank" rel="noopener noreferrer nofollow" href="https://flare.network/">Flare</a> has spent the last year beefing up its off-chain verification engines, and those systems are raking in cash.
Fees from the Flare Data Connector, a tool that checks and confirms events happening on rival blockchains, have outpaced every other revenue stream on the network since the rollout of upgrade FIP.16. DefiLlama notes that this single connector now drives 45% of Flare's total incoming network fees. Staking patterns are shifting alongside revenue; directly staked FLR climbed from 32% in April to 46% by August, largely spurred by a summer hard fork that sweetened rewards for direct validators.
<h2 id="header-2">The Institutional Hurdle Ahead</h2>
The next hill to climb is corporate trust. Flare is currently testing "Confidential Compute," an encryption framework meant to let smart contracts parse sensitive commercial figures without exposing raw trade secrets to public scrutiny.
Early tests are running on Songbird, Flare's testing network, where the tool handles proof-of-reserve checks for Hex Trust's USDX token. Moving that technology onto mainnet will take time.
The network's future depends on several moving targets: shipping Confidential Compute to production, rolling out the planned FBTC bridge for Bitcoin, and keeping fee revenues high. If Flare pulls off that triple play, it could prove that XRP liquidity was merely a rehearsal for a far bigger institutional rollout.

Idle XRP Finds Work: DefiLlama Tracks Massive Shift into On-Chain Yield

Table of Contents

Nathon Clark

Other articles published on Oct 21, 2026

Join our free newsletter for daily crypto updates!