Why did the price of FLR fall?
Flare (FLR) dropped 12.4% in the last 24 hours, underperforming the overall crypto market, which fell 9.8%. The main reasons are:
- Selling pressure linked to XRP – Large XRP holders sold over $50 million daily, which affected FLR because of its connection to XRP through FXRP collateral.
- Token unlock increasing supply – On October 6, 44.7 million FLR tokens were unlocked, adding more tokens to the market when demand was weak.
- Technical breakdown – FLR fell below a key support level at $0.021, triggering automatic sell orders.
Deep Dive
1. XRP Whale Selling Spillover (Negative Impact)
XRP experienced daily sales of more than $50 million by large holders (Santiment). FLR was affected because it’s used in FXRP, Flare’s version of XRP. To mint FXRP tokens, FLR is required as a fee and as collateral, equal to 0.5% of the XRP value held. As XRP’s price weakened, demand for FLR dropped, and some FLR had to be sold off to cover collateral requirements.
What this means: FLR’s value depends partly on XRP’s success. If XRP continues to weaken, FLR could face ongoing pressure, reducing its use in decentralized finance (DeFi) and lowering demand for the token.
2. Token Unlocks Increase Supply
On October 6, Flare released 44.7 million FLR tokens (worth about $870,000) as part of a planned schedule. Although this is small compared to FLR’s total market value of $1.48 billion, it happened during:
- A 222% jump in FLR trading volume, suggesting panic selling
- Low staking participation – only about 70% of FLR tokens are currently staked or delegated (Flare Networks)
What to watch: The next big unlock is on October 12, when 3.37 billion FLR tokens will be released. If the market can absorb this without panic, prices may stabilize.
3. Technical Breakdown (Bearish Momentum)
FLR’s price fell below its 30-day moving average ($0.0242) and a key Fibonacci support level at $0.021. This pushed the token into oversold territory, with technical indicators like RSI at 16.43 and MACD showing negative momentum. There’s little support until $0.0158, which was FLR’s low earlier this year.
Key level: If FLR can close above $0.021, it might signal a short-term recovery, but the 200-day moving average at $0.0214 now acts as resistance.
Conclusion
FLR’s recent price drop is due to a combination of XRP’s weakness, token unlocks increasing supply, and negative technical signals. While FXRP adoption (with $43 million in bridged XRP) provides long-term potential, short-term risks are high.
Key question: Will FLR hold its 2024 low of $0.0158, or will ongoing problems with XRP cause further declines?
What could affect the price of FLR?
Flare’s price is currently caught between growing use in decentralized finance (DeFi) and some market challenges.
- XRPFi growth – Institutional investments through Firelight could boost demand.
- Token unlocks – More than $44 million worth of FLR tokens will become available in October 2025, which could increase selling pressure.
- Altcoin market mood – A low “Alt Season” index score (37/100) limits speculative buying interest.
In-Depth Look
1. XRPFi Adoption & Firelight Launch (Positive for Flare)
What’s happening:
Flare’s Firelight protocol allows XRP holders to stake their tokens and receive stXRP in return, making their assets more flexible. VivoPower, a company listed on Nasdaq, has committed $100 million worth of XRP to this system. So far, over $43 million in XRP has been converted into FXRP and is being used in DeFi activities like secured loans on platforms such as Enosys.
Why it matters:
When institutions lock up XRP this way (with plans to lock up to 10 billion XRP), it reduces the number of tokens available for sale, which can help support the price. Plus, FXRP can be used in various DeFi applications, increasing the usefulness of FLR tokens for things like collateral and transaction fees. If the total value locked (TVL) in these DeFi projects grows beyond the current $236 million, it could indicate strong and lasting demand.
2. Token Supply Changes (Potential Downside)
What’s happening:
The number of FLR tokens available in the market increased by 12% in the third quarter of 2025 because of rewards distributed across different blockchains. In October, about 44.73 million FLR tokens (worth roughly $872,000 at current prices) will become unlocked and available for trading, adding to the existing supply from staking rewards.
Why it matters:
Even though FLR’s price dropped 15% this month, the token’s high turnover rate (390% annually) suggests many holders are selling rather than holding long-term. This new supply could lead to more selling pressure unless big investors, like Uphold who plans to integrate FLR, step in to buy and hold.
3. Overall Market Mood & Crypto Trends (Mixed Effects)
What’s happening:
The crypto market’s fear/greed index is at 35, indicating fear among investors. Bitcoin’s dominance in the market is nearly 60%, which means it’s attracting more investment than alternative cryptocurrencies (altcoins). However, Flare’s partnership with Telegram Wallet, which has over 100 million users, could help bring more everyday users into the Flare ecosystem.
Why it matters:
FLR has underperformed Bitcoin by about 20% over the past week, reflecting a cautious market mood. For FLR to bounce back, either the overall altcoin market needs to improve (the current “Alt Season” index is low at 37 and has dropped 39% this month), or Flare needs specific positive events, such as increased demand linked to exchange-traded funds (ETFs).
Conclusion
Flare’s price will depend on whether the growth in XRPFi adoption can outpace the increase in token supply and broader market challenges. The milestone of $43 million in FXRP and Firelight’s institutional support are positive signs, but the upcoming token unlocks and weak altcoin sentiment present short-term risks.
Key question: Can Flare’s DeFi ecosystem grow its total value locked by more than 20% each month to absorb the new tokens entering the market?
What are people saying about FLR?
The Flare (FLR) community is balancing hopeful excitement about its uses with concerns about price swings. Here’s what’s currently trending:
- FLR’s growing uses – staking, token burns, and adoption of XRPFi are hot topics.
- Ripple’s early support sparks talk of a potential price jump.
- Technical analysts are watching for FLR to reach $0.038–$0.045 if positive trends continue.
- Meetups in Turkey highlight grassroots interest in XRPFi.
- Network stability worries remain after a June outage.
In-Depth Look
1. @FlareNetworks: FLR’s Multi-Utility Engine Bullish
“70% of FLR is staked or delegated. FAssets v1.1 requires FLR as collateral, burning 4,000–7,000 tokens daily.”
– @FlareNetworks (283K followers · 1.2M impressions · July 16, 2025)
See original post
What this means: This is positive news. When a large portion of FLR is staked, fewer tokens are available to sell, which can support the price. Plus, the daily burning of tokens reduces the total supply, potentially increasing value over time.
2. @KingKaranCrypto: Ripple’s FLR Bet Bullish
“Ripple invested before launch. Do you think $FLR will stay at $0.02?”
– @KingKaranCrypto (89K followers · 420K impressions · September 3, 2025)
See original post
What this means: Ripple’s early investment is seen as a strong vote of confidence, which could drive FLR’s price up. However, FLR is currently trading around $0.0195, down about 12% over the past month.
3. CoinMarketCap: Technical Breakout Targets Bullish
“FLR broke through the $0.030 resistance level and is targeting $0.038–$0.045. A golden cross (50-day moving average crossing above the 200-day) is forming.” (Source)
– CoinMarketCap Analysis (July 23, 2025)
What this means: If FLR can consistently close above $0.032, it may confirm an upward trend. However, the Relative Strength Index (RSI) at 67 suggests the token could be getting overbought, which sometimes leads to a price pullback.
4. @TurkiyeFlare: Grassroots XRPFi Momentum Neutral
“An Istanbul meetup attracted over 300 people interested in XRPFi yields.”
– Retweeted by @FlareNetworks (October 6, 2025)
See original post
What this means: Local interest in XRPFi is growing, which is a positive sign for adoption. However, FLR’s price has dropped about 20% in the past week, showing a disconnect between community enthusiasm and market performance.
5. @FlareNetworks: June Outage Impact Bearish
“A brief network halt on June 26 required validator upgrades.”
– @FlareNetworks (June 26, 2025)
See original post
What this means: The outage raised concerns about network reliability, which can hurt confidence among larger investors, even though the issue was quickly fixed.
Conclusion
Overall, opinions on Flare are mixed. Positive stories about FLR’s uses and XRPFi adoption are balanced by technical resistance levels and past network issues. The staking and token burn features support long-term value, but FLR needs to climb back above $0.025 to reverse its recent 12.4% drop over 30 days. Keep an eye on the FAssets collateral ratio: for every $1 million in FXRP minted, about 6,500 FLR tokens are locked up, creating steady demand.
What is the latest news about FLR?
Flare is gaining momentum by tapping into Telegram’s huge user base of over 100 million people while also locking up more of its tokens. Here are the latest updates:
- Telegram Wallet Integration (October 8, 2025) – FLR is now accessible to Telegram’s users for staking and swapping.
- $43 Million XRP Bridged (October 9, 2025) – More XRP is moving onto Flare’s network as FXRP, increasing its use in decentralized finance (DeFi).
- 4 Million XRP Locked on Flare (October 8, 2025) – A large amount of XRP was locked in Flare’s escrow system, hinting at possible institutional involvement.
Deep Dive
1. Telegram Wallet Integration (October 8, 2025)
What happened: Flare teamed up with Telegram’s Wallet to bring FLR tokens into the app. Users can now deposit FLR, swap it for other tokens, and stake it to earn up to 50% annual returns. The integration also includes educational materials, fun tasks to engage users, and a special FLR Hub inside Telegram.
Why it matters: This is a big positive for FLR because Telegram’s large user base makes it easier for everyday people to start using FLR. The staking rewards encourage users to hold their tokens, which can reduce the number of FLR tokens available for trading. Plus, promoting FLR inside Telegram helps raise awareness. (U.Today)
2. $43 Million XRP Bridged (October 9, 2025)
What happened: More than $43 million worth of XRP has been moved onto Flare’s network as FXRP tokens. These tokens are now being used in DeFi activities like lending and providing liquidity. Flare’s liquid staking protocol, Firelight, now supports large-scale XRP deployments aimed at institutional users.
Why it matters: The growing use of FXRP strengthens Flare’s position as the DeFi platform for XRP. Locking up XRP reduces the amount available to sell, which can help support prices. At the same time, more FLR tokens are needed to handle transactions and collateral, increasing demand. Experts believe this could lead to a supply shortage that drives prices higher. (CoinGape)
3. 4 Million XRP Locked on Flare (October 8, 2025)
What happened: An unknown wallet locked 4 million XRP (about $11.5 million) using Flare’s escrow system. This has sparked speculation that institutions might be testing the platform or preparing new DeFi strategies. The wallet is connected to Flare’s XRPFi infrastructure.
Why it matters: This is a cautiously positive sign. Large token locks show confidence in Flare’s long-term potential but might temporarily reduce liquidity. If this is part of a new DeFi plan, it could indicate upcoming improvements to the platform. (U.Today)
Conclusion
Flare is speeding up the adoption of XRPFi through partnerships like the one with Telegram, growing FXRP use, and interest from big players. Although FLR’s price has been volatile recently (down about 20% over the past week), these developments aim to balance supply and demand. The big question is whether Telegram’s large user base can help FLR overcome broader market challenges.
What is expected in the development of FLR?
Flare’s roadmap is focused on expanding how different blockchains work together and growing decentralized finance (DeFi) use on its platform.
- Firelight Launch (Q4 2025) – Introducing liquid staking for XRP through stXRP tokens.
- FAssets Expansion (2026) – Adding support for Bitcoin and Dogecoin.
- LayerCake Upgrades (2026) – Making cross-chain transactions easier and more automated.
- DeFi Incentive Program – Allocating 2 billion FLR tokens to encourage ecosystem growth.
Deep Dive
1. Firelight Launch (Q4 2025)
Overview:
Firelight will allow XRP holders to participate in liquid staking by minting stXRP tokens, which lets them earn rewards while keeping their assets flexible. This follows the launch of FAssets in September 2025, which first brought XRP into DeFi on Flare.
What this means:
This is positive for FLR because stXRP could attract more XRP users to Flare, increasing demand for FLR tokens used as collateral and for transaction fees. However, there is competition from other liquid staking platforms that could limit growth.
2. FAssets Expansion to Bitcoin & Dogecoin (2026)
Overview:
Flare plans to expand its FAssets system to support Bitcoin and Dogecoin, allowing these popular cryptocurrencies to be used within Flare’s DeFi ecosystem (Flare Labs).
What this means:
This is somewhat positive. It broadens Flare’s capabilities, but success depends on whether Bitcoin and Dogecoin communities adopt the platform and how well Flare manages risks during price swings.
3. LayerCake Upgrades (2026)
Overview:
LayerCake upgrades will simplify and automate transactions that involve multiple blockchains, making it easier for users to perform complex operations directly on Flare.
What this means:
If successful, this could be a big win for FLR by making Flare a central hub for cross-chain DeFi activity. However, the technical challenges are significant, and Flare faces competition from other projects like Polkadot and Cosmos.
4. DeFi Incentive Program
Overview:
Flare has set aside 2 billion FLR tokens (about $43 million at current prices) to encourage liquidity and development, especially for XRPFi and projects based on FAssets (July 2025 tweet).
What this means:
This is a positive short-term boost that could increase total value locked (TVL) and developer interest. Long-term success will depend on whether the ecosystem can grow naturally after incentives end.
Conclusion
Flare’s roadmap emphasizes making blockchains work better together and growing institutional DeFi, with XRPFi and FAssets as key components. Major updates like Firelight and LayerCake have the potential to increase FLR’s usefulness, but there are risks in execution. The big question is how Flare will manage fast growth while keeping the network decentralized.
What updates are there in the FLR code base?
Flare’s software has recently undergone important security and infrastructure improvements.
- Avalanche 1.11.0 Integration (June 26, 2025) – Boosted network speed and compatibility.
- FAssets v1.2 Security Update (August 9, 2025) – Simplified code and stronger security checks.
Deep Dive
1. Avalanche 1.11.0 Integration (June 26, 2025)
What happened: Flare updated its core system to work with Avalanche 1.11.0, which improved how the network reaches agreement and stays stable. This update made block processing faster and improved communication between network validators (the computers that confirm transactions).
Important changes included fixes that still work with older versions and better peer-to-peer communication protocols. Node operators had to update their software by August 5, 2025 to keep the network running smoothly. This upgrade also improved Flare’s ability to connect with other blockchains, which is key for handling assets like XRP that don’t have smart contract capabilities.
Why it matters: This is good news for FLR because it makes the network more reliable and scalable, which is important for attracting larger financial players to decentralized finance (DeFi). Users can expect faster transaction confirmations and less chance of network downtime.
(Source)
2. FAssets v1.2 Security Update (August 9, 2025)
What happened: Flare simplified the FAssets protocol code (version 1.2) to reduce complexity and potential security risks, focusing on protecting FXRP and future assets.
This involved removing unnecessary parts of the code and having it reviewed by a top security auditor. They also ran a Code4rena competition, which invites the community to find vulnerabilities before the update goes live. Although this process delayed the launch by a few weeks, it helps ensure the system is safer for large institutional users.
Why it matters: This update is neutral to positive for FLR. While the delay might be frustrating short-term, the improved security builds trust, which could bring more value into Flare’s XRPFi ecosystem. Traders should watch for audit results expected in mid-August 2025 for more clarity.
(Source)
Conclusion
Flare’s recent updates show a clear focus on enterprise-level security and better interoperability with other blockchains. With the Avalanche improvements already live and FAssets v1.2 audits underway, these changes could help FLR play a bigger role in the growing XRPFi decentralized finance space.