On-chain data from Flare Network shows that XRP is shedding its passive reputation as over 80% of FXRP — representing approximately $125.8 million — remains locked in decentralized finance (DeFi) protocols. The metrics signal rising user activity, deepening liquidity, and renewed bullish momentum for XRP and the XRP Ledger (XRPL) as infrastructure unlocks real DeFi demand.
Flare Metrics Reveal Steady DeFi Adoption Amid Weak Market
Flare Network, a blockchain infrastructure provider, shared commentary on X (formerly Twitter) on Dec. 29, 2025, arguing that XRP holders are actively participating in DeFi. According to data as of Dec. 30, roughly 80% of the total FXRP supply of 83.95 million tokens — about 67.8 million FXRP — is deployed across Flare-based DeFi protocols during a weak market environment. Flare stated: “XRP holders are often seen as passive and ‘not DeFi users.’ FXRP data tells a different story.” The team added that the growth occurred without short-term yield chasing, following a steady, step-by-step pattern: “Turns out the issue was never demand. It was infrastructure. Flare is unlocking XRP DeFi.”
User participation continues to expand, with more than 5,800 DeFi users and FXRP users representing over 55.5% of total FXRP holders. Transaction activity has exceeded 1.2 million DeFi transactions, including over 1.12 million FXRP swaps, alongside tens of thousands of liquidity additions and removals. Flare framed this as conviction-driven engagement, with capital persistently locked despite market volatility.
Infrastructure Unlocks XRP’s DeFi Utility
FXRP is a 1:1 representation of XRP minted through Flare’s non-custodial FAssets system, enabling XRP to interact with EVM-compatible decentralized applications while remaining economically tied to XRPL liquidity. Beyond core DeFi, related products like stXRP are gaining traction: over $4.17 million locked in Sparkdex, more than $1 million in Enosys, and additional allocations across Kinetic and other platforms. Within the Kinetic protocol alone, FXRP liquidity exceeds 37.4 million tokens, with total supply valued at over $72 million and borrowing activity approaching $2.7 million. These figures highlight growing composability and capital efficiency driven by XRP.
The data underscores that XRP’s historical DeFi limitations stemmed from missing infrastructure rather than lack of demand. With Flare extending smart contract functionality and DeFi access, XRP and the XRP Ledger are increasingly positioned as scalable liquidity layers capable of supporting sustained decentralized finance growth.
Bullish Implications for XRP and XRPL
The combination of deepening liquidity, rising user counts, and improved infrastructure signals a structural shift for XRP from a passive store of value to an active DeFi asset. While XRP trades near $2.40, the on-chain fundamentals — over $125 million locked, 1.2 million transactions, and steady user growth — provide a robust basis for long-term bullish sentiment. As Flare continues to bridge XRP to the broader DeFi ecosystem, the network effect could further amplify XRP’s utility and market relevance.