Flare Emerges as the Leading DeFi Platform for XRP Following FXRP Launch

Flare, which became top DeFi platform for XRP

Flare has established itself as the premier Ethereum-compatible DeFi ecosystem for XRP after introducing the wrapped FXRP token.

XRP is making significant strides into the decentralized finance (DeFi) sector. On October 21, Flare Network reported impressive growth in the total value locked (TVL) in FXRP, a trustless wrapped version of XRP on its blockchain. With this development, Flare has positioned itself as the largest EVM DeFi ecosystem for XRP holders.

Key Takeaways

Flare launched the wrapped FXRP token, leading to a surge in its DeFi platform's growth.
The total value locked (TVL) in FXRP has increased by 37.9%, reaching $86.2 million.
Users can easily mint FXRP tokens through their Xaman wallet, making it more accessible for new participants.
While XRP Ledger offers some DeFi features, its functionalities are somewhat limited compared to other smart contract platforms.

Flare Unlocks New DeFi Opportunities for XRP

Flare has noted that the increase in TVL signals a growing interest in the DeFi applications available for XRP. The wrapped FXRP token allows users to participate in various DeFi activities such as yield earning and lending, which are currently unavailable on the standard XRP Ledger.

This recent development follows an announcement made by Flare just a week prior, informing users they could mint FXRP tokens directly from their Xaman wallets. This integration simplifies the process for new XRP holders who are interested in entering the DeFi space.

Although the XRP Ledger includes some DeFi functionalities, these capabilities are relatively limited compared to the offerings of other smart contract networks. For example, while the XRP Ledger has a native decentralized exchange (DEX), automated market makers, and compliance frameworks, it still lacks comprehensive native lending protocols.