Why did the price of FLR fall?

Flare (FLR) dropped 1.47% in the last 24 hours, underperforming the overall crypto market, which was down just 0.06%. This pullback comes after a strong 16% rally over the past month and reflects mixed reactions to recent updates in the Flare ecosystem. Here are the main points to know:

1. Profit-Taking After Gains – FLR’s 16% rise over 30 days led some traders to cash out their profits.
2. XRP Community Concerns – Some worry that liquidity is moving from the XRP Ledger to Flare’s new stablecoin system.
3. Technical Resistance – FLR’s price is hitting a key resistance level around $0.025, with momentum indicators showing a neutral outlook.

Deep Dive

1. Profit-Taking After Rally (Bearish Impact)

Overview:
FLR’s 16% gain in the past month was driven by the launch of Flare’s XRP-backed stablecoin and new DeFi features. The recent 1.47% drop aligns with a broader market pause and traders locking in profits near recent highs.

What this means:
Short-term investors are selling some of their holdings after FLR’s strong performance. Trading volume fell 59% in 24 hours to $9.3 million, which increased price swings because fewer buyers and sellers were active. Historically, FLR tends to pull back after big gains — for example, it dropped 14% in December 2024 after a 70% monthly jump.

What to watch:
Whether FLR can hold above its 30-day simple moving average (SMA) at $0.0228, a key support level that helped fuel its recent rally.

2. XRP Community Tensions (Mixed Impact)

Overview:
Flare’s new Enosys Loans protocol allows users to mint stablecoins backed by XRP. This has sparked debate about whether liquidity is shifting away from the XRP Ledger (XRPL) to Flare’s platform. Some validators, like Vet, worry this could reduce trading activity on the XRPL decentralized exchange (DEX).

What this means:
While this innovation expands XRP’s use in decentralized finance (DeFi), some see it as a trade-off that might hurt the original XRP network. This uncertainty may have led some holders of both FLR and XRP to sell cautiously. However, FLR’s strong token burn rate (45.8 million FLR per month) and high staking levels (70% of supply locked) help reduce long-term risks.

Key metric:
Total Value Locked (TVL) in Flare’s XRPFi ecosystem is currently $150 million, according to DeFiLlama.

3. Technical Consolidation (Neutral)

Overview:
FLR’s price is facing resistance at $0.0251, with technical indicators showing weakening bullish momentum. The MACD histogram is slightly positive (+0.0002), while the Relative Strength Index (RSI) at 57.9 indicates neither overbought nor oversold conditions.

What this means:
Traders are waiting for clearer signals before making big moves. The 23.6% Fibonacci retracement level at $0.0232 now acts as important support. If FLR falls below this, it could test the next support at the 38.2% retracement level ($0.0218). On the other hand, a move above $0.0251 could restart upward momentum.

Conclusion

FLR’s recent dip is a natural pause after strong monthly gains, influenced by debates within the XRP community and neutral technical signals. The network’s fundamentals remain solid, with growing DeFi adoption and ongoing token burns supporting its outlook.

Key to watch: Can FLR stay above the $0.0232 support level, or will broader market sentiment (Fear Index at 34) lead to further consolidation?

What could affect the price of FLR?

Flare’s price depends on how much DeFi (decentralized finance) grows on its platform, token burning, and how it fits within the XRP ecosystem.

1. FAssets growth – New XRP-backed stablecoins increase FLR’s usefulness (positive)
2. Token burns & staking – Locking up 70% of FLR reduces selling pressure (mixed)
3. XRPFi competition – Some pushback from the XRP community could limit growth (negative)

Deep Dive

1. FAssets & XRP DeFi Integration (Positive Impact)

Overview: In September 2025, Flare launched XRP-backed stablecoins through Enosys Loans (Enosys). Users can create stablecoins by putting up FLR and FXRP tokens as collateral. This links FLR’s demand directly to XRP’s large market value (over $130 billion).

What this means: More DeFi activity on Flare means more people need FLR to back these stablecoins (1.5 times the FLR is required for each FXRP minted). Past launches showed total value locked (TVL) rising from $37 million to $150 million in 2025, indicating strong growth potential.

2. Token Supply Dynamics (Mixed Impact)

Overview: About 70% of FLR tokens are staked or delegated (FlareNetworks tweet), which means they’re locked up and not available for selling. However, monthly token burns (66 million FLR until 2026) only reduce the supply by a tiny amount (0.08%).

What this means: High staking reduces the number of tokens available to sell, which can support the price (positive). But the small scale of token burns and ongoing token distributions (FlareDrops totaling 24 billion FLR through 2026) could increase supply and put downward pressure on price if demand doesn’t grow enough.

3. XRP Ecosystem Tensions (Negative Impact)

Overview: Some validators on the XRP Ledger (XRPL) have criticized Flare’s XRPFi projects, saying they pull liquidity away from the native XRP network (Cryptopotato).

What this means: If XRP holders prefer to use DeFi services directly on the XRPL instead of Flare, FLR’s growth could be limited. Still, Flare’s partnerships with companies like Uphold and VivoPower show there is institutional interest that might balance this risk.

Conclusion

FLR’s price in the medium term will likely depend on whether more people adopt XRPFi faster than the supply of FLR grows and how it competes with XRPL-based DeFi. The key technical level to watch is the 61.8% Fibonacci retracement at $0.0232—if FLR stays above this, it could signal a positive trend. October’s token burn results will be important to see if supply is shrinking enough compared to growing DeFi activity.

What are people saying about FLR?

The Flare community is excited about XRPFi’s growing influence, the mechanics behind burning FLR tokens, and the rewards from staking. However, there are ongoing discussions about the network’s stability. Here’s what’s trending:

1. XRPFi is boosting FLR’s real-world use
2. 70% of FLR tokens are staked, and daily burns are reducing supply
3. Concerns remain about outages and exchange listings

Deep Dive

1. @FlareNetworks: XRPFi is creating steady demand for FLR

“Every FXRP minted requires FLR as collateral and to pay transaction fees. For example, minting 1,000 FXRP needs about 650 FLR held as reserve. As XRPFi grows, so does the ongoing demand for FLR.”
– @FlareNetworks (3.2M followers · 1.8M impressions · 2025-05-27 18:49 UTC)
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What this means: This is positive for FLR because XRPFi links FLR’s demand directly to the activity on the XRP blockchain’s decentralized finance (DeFi) platform, creating a continuous cycle of use.

2. @FlareNetworks: High staking rates and token burns reduce supply

“Currently, 70% of FLR tokens are staked or delegated. Daily transaction fees burn between 4,000 and 7,000 FLR tokens, with a total of 2.1 billion FLR burned since 2024.”
– @FlareNetworks (3.2M followers · 2.4M impressions · 2025-07-16 17:25 UTC)
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What this means: This is good news for FLR holders because staking reduces the number of tokens available for sale, and burning tokens lowers the total supply, which could increase the token’s value if network use continues to grow.

3. @ProBit_Exchange: Maintenance causes short-term liquidity worries

“FLR deposits and withdrawals were paused for 24 hours during a wallet upgrade in June 2025. Trading went on, but users noticed thinner order books.”
– @ProBit_Exchange (890K followers · 412K impressions · 2025-06-27 06:19 UTC)
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What this means: This is a short-term negative because service interruptions can shake user confidence. However, if these upgrades improve the network’s reliability, the long-term outlook remains neutral to positive.

Conclusion

Overall, the outlook for Flare is positive, driven by XRPFi’s growing use of FLR and a shrinking token supply. However, infrastructure challenges create some uncertainty. Keep an eye on the FLR burn rate (which you can track through Flare’s transparency portal) and XRPFi’s Total Value Locked (TVL) to spot changes in momentum. The key question is whether FLR’s expanding DeFi applications can overcome occasional network issues.

What is the latest news about FLR?

Flare’s XRPFi ecosystem is gaining momentum with new decentralized finance (DeFi) tools and ongoing discussions. Here are the latest highlights:

1. XRP-Backed Stablecoin Launches (September 20, 2025) – Enosys allows XRP holders to create stablecoins on Flare without selling their XRP.
2. Flare Community Debates mXRP (September 21, 2025) – Mixed opinions arise over mXRP, a token that earns yield, amid concerns about liquidity moving away from the XRP Ledger (XRPL).
3. FLR Trading Begins on Hyperliquid (September 17, 2025) – Native FLR token trading starts on Hyperliquid using LayerZero’s cross-chain technology.

Deep Dive

1. XRP-Backed Stablecoin Launches (September 20, 2025)

Overview:
Enosys introduced the first stablecoin backed by XRP on the Flare network. This uses a system called a Collateralized Debt Position (CDP), where users lock up FXRP (Flare’s version of XRP) or wFLR tokens to mint stablecoins pegged to $1. These stablecoins can be used for earning interest, making payments, or buying NFTs. The system relies on Flare’s decentralized price oracle (Flare Time Series Oracle, or FTSO) for accurate pricing and is based on a proven Ethereum protocol called Liquity V2.

What this means:
This development is positive for FLR because it increases XRP’s usefulness within Flare’s DeFi ecosystem. It could attract liquidity from XRP’s large market cap (over $130 billion). However, the stablecoin’s success depends on how widely it is used in Flare’s decentralized exchanges (DEXs) and lending platforms. (CryptoTimes)

2. Flare Community Debates mXRP (September 21, 2025)

Overview:
At the XRP Seoul 2025 conference, Midas and Interop Labs unveiled mXRP, a token that offers up to 10% annual yield through the Axelar Network. While some community members welcomed this innovation, validators on the XRP Ledger, like Vet, expressed concerns that mXRP might pull trading activity away from XRPL’s native decentralized exchange to outside platforms.

What this means:
This debate shows the challenge of growing XRP’s DeFi presence while protecting the XRPL ecosystem. For FLR, it highlights its increasing importance as a center for XRPFi (XRP-based DeFi), but success will require balancing partnerships without harming XRPL’s core network. (CryptoPotato)

3. FLR Trading Begins on Hyperliquid (September 17, 2025)

Overview:
FLR is now available for trading on Hyperliquid, a platform focused on perpetual contracts (a type of derivatives trading). This is made possible through LayerZero’s Omnichain Fungible Token (OFT) standard, allowing users to move FLR tokens across blockchains without needing to “wrap” them first, simplifying the process.

What this means:
This listing improves FLR’s liquidity and gives it exposure to traders who use leverage. While Hyperliquid’s massive $814 billion derivatives volume is mostly BTC and ETH, adding FLR shows Flare’s commitment to cross-chain compatibility. (CryptoTimes)

Conclusion

Flare is strengthening its position as the DeFi layer for XRP by launching stablecoins and integrating with exchanges. However, aligning its ecosystem with the XRP Ledger remains a challenge. The key question is whether XRP holders will choose to earn yield on Flare or stick with liquidity on the native XRPL.

What is expected in the development of FLR?

Flare’s roadmap is focused on growing its decentralized finance (DeFi) tools, improving cross-chain compatibility, and attracting institutional users. Here are the key upcoming milestones:

1. FAssets Expansion (Q4 2025) – Adding support for Stellar (XLM), Cardano (ADA), and Dogecoin (DOGE).
2. Firelight Mainnet Launch (September 2025) – Introducing liquid staking for XRP holders.
3. SparkDEX Upgrades (Q3 2025) – Launching version 4 of the decentralized exchange and a new Strategy Hub.
4. Global Community Events (August–September 2025) – Meetups and workshops in Seoul, New York City, and Tokyo.
5. Revolut Learn & Earn (August 2025) – Partnering to onboard millions into Flare’s ecosystem.

Deep Dive

1. FAssets Expansion (Q4 2025)

What’s happening: Flare is expanding its FAssets protocol, which currently supports XRP, to include Stellar (XLM), Cardano (ADA), and Dogecoin (DOGE). This means these cryptocurrencies, which don’t have smart contract capabilities on their own, can now be used within Flare’s DeFi platform through a secure, decentralized process that requires FLR tokens as collateral.
Why it matters: This should increase demand for FLR since users need FLR tokens to mint these new FAssets. However, there could be delays due to the need for thorough security checks across multiple blockchains (Flare Community Call, July 2025).

2. Firelight Mainnet Launch (September 2025)

What’s happening: Firelight is Flare’s liquid staking protocol. It allows XRP holders to stake their tokens and receive stXRP (an ERC-20 token) in return, which they can use in DeFi applications while still earning staking rewards. After successful testing on the Songbird network, the mainnet launch aims to attract institutional investors, with VivoPower already committing $100 million in XRP.
Why it matters: This could unlock value from XRP’s large market cap ($130 billion), but its success depends on how well the staking yields hold up and regulatory developments (CryptoPotato).

3. SparkDEX Upgrades (Q3 2025)

What’s happening: SparkDEX, Flare’s main decentralized exchange, will get new features like Hook-enabled swaps (which allow more flexible trading), a Strategy Hub for automated yield farming, and vaults backed by insurance. The launch of the SPRK token in July 2025 will add governance and liquidity incentives.
Why it matters: These upgrades will increase the usefulness of FLR tokens since SparkDEX handles 60% of Flare’s $170 million total value locked (TVL). However, competition from Ethereum Layer 2 solutions remains a challenge (CoinMarketCap).

4. Global Community Events (August–September 2025)

What’s happening: Flare plans to host hackathons, developer workshops, and educational sessions about XRPFi in cities like Seoul, New York City, and Tokyo. These events aim to attract developers and promote cross-chain applications.
Why it matters: While community growth is positive, the real impact will depend on measurable outcomes like new wallet creations and decentralized apps built on Flare (Flare Networks).

Conclusion

Flare is focusing on making different blockchains work together (FAssets), expanding institutional DeFi options (Firelight), and growing its ecosystem through SparkDEX and partnerships like Revolut. The next few months will be critical to see if Flare can maintain momentum and compete with other blockchain projects like Chainlink and Polkadot. Keep an eye on total value locked (TVL) and adoption of FXRP tokens after Firelight’s launch.

What updates are there in the FLR code base?

Flare’s recent software updates focus on improving network reliability and security.

1. Avalanche Core Upgrade (June 26, 2025) – Fixed a major bug affecting validators and improved network stability.
2. FXRP Security Overhaul (August 9, 2025) – Simplified the code to reduce security risks ahead of launch.
3. Testnet Preparation for FAssets (June 13, 2025) – Launched a test version to trial new features before going live.

In-Depth Look

1. Avalanche Core Upgrade (June 26, 2025)

What happened: Flare fixed a critical bug that was causing network outages by updating to Avalanche version 1.11.0. The issue involved errors in how validators’ stakes were calculated when staking amounts went beyond 9.2 quintillion FLR.

The fix involved switching from 64-bit to 128-bit number systems for selecting validators. Nodes that updated by August 5, 2025, experienced 18% faster block confirmations and no longer faced crashes caused by “errOutOfRange” errors.

Why it matters: This update is positive for FLR because it prevents future network shutdowns during times of heavy staking. Currently, 38.8 billion FLR (worth about $991 million) is staked on the network. (Source)

2. FXRP Security Overhaul (August 9, 2025)

What happened: Flare reduced FXRP’s codebase by 40% to remove unnecessary functions and lower the risk of security vulnerabilities before the mainnet launch.

The version 1.2 update added KYC-verified collateral agents and started a security audit competition called Code4rena in mid-August 2025. This caused a roughly three-week delay in the FXRP mainnet launch but improved overall security.

Why it matters: While the delay is a short-term neutral factor, the stronger security is a positive long-term development. It could encourage large investors like VivoPower, which holds $100 million in XRP, to participate in Flare’s decentralized finance (DeFi) ecosystem. (Source)

3. Testnet Preparation for FAssets (June 13, 2025)

What happened: Flare released version 1.11.0-testnet to test the Firelight protocol before integrating it into the main network.

During testing, the network processed 220,000 simulated XRP to FXRP conversions and found ways to reduce transaction costs by 14%. Validators successfully upgraded to the new protocol by June 24 (Coston2 testnet) and July 1 (Coston testnet).

Why it matters: This is a positive sign for FLR, as smooth testnet results suggest the upcoming FAssets launch on the mainnet will be stable. FAssets are important for expanding XRP-based DeFi applications. (Source)

Conclusion

Flare is focusing on making its network more reliable and secure while enhancing its ability to work with XRP. With FLR’s price growing over 61% annually, these upgrades could strengthen its position in the $3.78 trillion cryptocurrency market, especially during uncertain or “Fear” phases.