XRP is opening up new possibilities in decentralized finance (DeFi). Previously considered a mere holding asset, XRP has recently demonstrated active DeFi participation through the Flare Network, leading to expanded utility within the XRP ecosystem and a shift in market perception.
Over 80% of FXRP invested in DeFi... Transforming from a "sleeping coin" to an "active asset."
Blockchain infrastructure company Flare recently shared on-chain data revealing that approximately 80% of its XRP-based token, FXRP, is being used in DeFi protocols. This represents approximately $124.8 million (approximately KRW 180.2 billion), which is significant in that it's not simply being held in deposit accounts but is actually being used in financial activities. Notably, even amidst the overall market bearish trend, FXRP user numbers and trading activity are actually increasing, drawing attention.
Flare said, “The perception that XRP holders are inactive is gradually fading,” and emphasized that “FXRP’s high lockup ratio, continuous liquidity provision, and user growth data demonstrate a trust-based participation pattern in DeFi.”
With over 1.2 million transactions and 5,800 users, DeFi is expanding based on real-world use.
The Flare dashboard currently shows a total supply of FXRP of 83.95 million, with approximately 67.8 million connected to DeFi applications. The number of users exceeds 5,800, and DeFi transactions involving FXRP have surpassed 1.2 million. Of these, FXRP swaps accounted for over 1.12 million transactions, while other activities, such as liquidity provision and withdrawal, also reached tens of thousands.
A Flare representative explained, “Funds are being locked up based on continuous trust, not speculative participation seeking short-term profits,” and “If only the infrastructure can support it, XRP’s liquidity can expand rapidly in the DeFi field.”
Flare Expands Smart Contract Infrastructure, StXRP and Sparkdex See High Growth
In addition to FXRP, Flare is attempting to expand XRP-based liquidity through various derivatives, including stXRP. Sparkdex has approximately $4.17 million (approximately 60.2 billion KRW) in stXRP-based assets locked, and Enosys has over $1 million (approximately 14.5 billion KRW). The Kinetic platform has over 37.4 million FXRP deployed, and of the total FXRP circulating supply, over $72 million (approximately 104 billion KRW) has been injected into the DeFi market.
All of these trends are driving a shift in the valuation of XRP and XRPL, as they demonstrate that DeFi utilization of XRP is possible without centralized control, and that the ecosystem linked to smart contracts is starting to move real capital.
A trend that continues with Bitcoin... 'Bitcoin Hyper' is the bridgehead for DeFi expansion.
While XRP demonstrates its DeFi flexibility through Flare, a new Layer 2 project, Bitcoin Hyper, is also gaining attention. Powered by a Solana-based Virtual Machine (SVM), this network seeks to fully connect Bitcoin, which has been hampered by slow speeds and high fees, to the DeFi market.
The token "HYPER" performs core functions in this system, including trading, staking, and governance, and is instrumental in evolving Bitcoin from a simple store of value to a decentralized finance platform. The key is to provide an "accessible structure" for assets like XRP, which have sufficient user demand but lack the infrastructure to keep pace.
The power of infrastructure is being reused again… Structural foundations are more important than demand.
This data demonstrates that XRP can evolve from a coin simply reflecting short-term investor expectations to a financial governance asset with real utility. Flare's smart contract expansion is shedding the long-held label of "DeFi unsuitable asset" for XRP.
Ultimately, the key isn't "market demand," but "accessible infrastructure." The examples of XRP and Flare demonstrate this point, and Bitcoin opens the door to following the same path.
🔎 Market Interpretation
The market is now focusing on practical use-based activities rather than simple asset holdings. The expansion of XRP's DeFi ecosystem can be interpreted as a signal of the restoration of trust-based liquidity.
💡 Strategy Points
We should focus on utility scalability, not asset price. If reasonable infrastructure expansion precedes it, a rediscovery of the value of "undervalued, high-quality assets" similar to XRP could follow.
📘 Glossary
FXRP: An XRP-based asset created 1:1 with USDX via Flare Network's FAssets system. It can be integrated with EVM-compatible DeFi apps.
stXRP: A staking XRP derivative used on various DeFi platforms.
💡 Want to know more? AI-prepared questions for you:
A. FXRP is a token created by pegging XRP 1:1 on the Flare network, and is usable in DeFi apps compatible with the Ethereum Virtual Machine (EVM).
A. This is because the emergence of infrastructure like Flare has removed previous restrictions on participation. Beyond simple holding, use cases such as liquidity provision and swaps are increasing.
A. Bitcoin is an asset with high demand but a lack of DeFi infrastructure. Bitcoin Hyper is an attempt to connect Bitcoin to the standard DeFi ecosystem. It can be seen as another extension of the XRP+Flare model.
A. A large amount of locked funds indicates that assets are not subject to short-term fluctuations and demonstrate trust in the platform. This demonstrates both liquidity stability and user confidence.
TP AI Precautions
This article was summarized using a TokenPost.ai-based language model. Key points in the text may be omitted or inaccurate.
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