Flare becomes top DeFi platform for XRP after FXRP launch

Flare has become the top EVM DeFi ecosystem for XRP after the launch of the wrapped FXRP token.

XRP is increasingly expanding into the world of DeFi. On October 21, Flare Network announced rapid growth in the total value locked of FXRP, a trustless wrapped version of XRP on the chain. What’s more, the protocol stated that it had become the largest EVM DeFi ecosystem for XRP.

Since its launch on September 24, the TVL for the FXRP token has risen 37.9% due to increased network activity. This accelerated on October 19, when Flare (FLR) bridged another 15 million XRP tokens, bringing the TVL to $86.2 million.

Flare unlocks DeFi applications for XRP

According to Flare, this activity shows significant interest in XRP’s DeFi applications. Wrapped version of XRP (XRP) enables users to engage in DeFi activities such as earning yield and lending, which are not available on the XRP Ledger.

This development follows a prior announcement by Flare a week earlier, which revealed that users could mint their FXRP tokens directly through their Xaman wallet. This integration lowers the barrier to entry for new XRP holders who want to participate in the DeFi ecosystem.

The XRP Ledger has some DeFi capabilities, but these are still limited compared to most other smart contract chains. For instance, the network has a native DEX, automated market makers, and compliance infrastructure. However, native lending protocols are still lacking.