Flare Network has released data showing high FXRP activity in DeFi: most of the token's circulation remains locked in ecosystem applications, with user activity and transaction volume staying substantial. This confirms that FXRP is used to connect XRP with EVM-compatible protocols and is not limited to purely speculative operations. Below, we analyze key figures, how FXRP mechanics work, and what this means for XRP holders and market participants.
What Do Flare Network Data Reveal About XRP?
According to the network, about 80% of all FXRP is locked in DeFi, corresponding to more than $124 million in assets engaged in Flare protocols. The total FXRP supply is 83.95 million tokens, of which nearly 67.8 million are already allocated for use in decentralized applications. Additionally, the network records over 5,800 users transacting with FXRP and more than 1.2 million DeFi transactions — all indicating sustained activity around the token.
How Does FXRP Expand XRP Ledger Capabilities?
FXRP functions as a 1:1 representation of XRP, created through the FAssets system, enabling interaction with EVM-compatible DeFi applications in a non-custodial manner. This allows XRP holders to leverage XRPL liquidity within ecosystems traditionally dominated by EVM smart contracts. Notable integrations include decentralized products and exchanges such as SparkDEX and Kinetic, along with other ecosystem projects.
The ecosystem shows significant liquidity concentrations: over $4.17 million is locked in staked instruments like stXRP on SparkDEX, while FXRP liquidity exceeds 37.4 million tokens in the Kinetic protocol. These figures demonstrate that capital is not merely passing through but remains in smart contracts for further use.
Why Is This Important?
For XRP holders and market participants, the data suggest that XRP's limited use in DeFi was mainly technological rather than demand-driven: FXRP's emergence via Flare provides a real pathway to integrate XRPL liquidity into EVM applications. Moreover, the high level of locked funds and transaction counts indicate deliberate long-term user engagement rather than short-term speculative flows.
If you follow the XRP ecosystem, growing DeFi activity could expand your liquidity use cases—from interacting with DEXs to participating in other DeFi products supporting FXRP and related instruments. However, it is important to understand that any actions converting XRP to FXRP and back require attention to fees, interfaces, and the specific protocols' terms.
What Should You Do?
If you are a miner with 1–1000 devices living in Russia, key steps are simple and practical: first, monitor liquidity and activity in protocols featuring FXRP to understand how easily you can enter and exit positions. Second, explore interfaces and products like SparkDEX and Kinetic to assess whether FXRP usage aligns with your liquidity management and risk strategies.
Basic guidelines include maintaining diversification, avoiding transferring large amounts to unfamiliar smart contracts without verification, and regularly reviewing transaction data and locked volumes. For a practical guide on leveraging Flare's opportunities without selling XRP, see the article on earning with XRP through Flare. For broader market context, refer to the XRP forecast overview.
Quick Tips
- Track the volume of locked FXRP and transaction counts as indicators of activity.
- Check liquidity on platforms like Kinetic and SparkDEX before large operations.
- Assess smart contract risks and use trusted interfaces.
FAQ
What is FXRP and how is it related to XRP? FXRP is a 1:1 representation of XRP created through Flare's FAssets system, providing non-custodial access to EVM-compatible DeFi applications while maintaining economic linkage to XRPL liquidity.
How widely is FXRP used in DeFi? According to Flare, about 80% of FXRP is locked in DeFi, amounting to over $124 million in protocols, with a total issuance of approximately 83.95 million tokens and nearly 67.8 million FXRP engaged in dApps.
Should a miner convert XRP to FXRP? This depends on your strategy and goals. For miners with smaller setups, it's important to evaluate liquidity and protocol conditions, while considering smart contract risks and conversion fees.