Why did the price of FLR go up?

Flare (FLR) increased by 2.49% in the last 24 hours, despite a 10.24% drop over the past week and a 25.32% decline over the last month. This recent rise is linked to positive developments within its ecosystem and some technical recovery, although challenges in the broader crypto market remain.

1. Growing XRPFi Ecosystem – More use of FXRP and institutional investments are boosting FLR’s value.
2. Technical Recovery Signs – Indicators suggest FLR may see short-term price relief near $0.0175.
3. Market Sentiment Shift – FLR is performing better than many altcoins during a period of overall market fear.

In-Depth Analysis

1. XRPFi Adoption (Positive for FLR)

What’s happening: Flare’s FAssets protocol has locked about 30 million XRP (worth roughly $66 million) as FXRP tokens on its network (FlareNetworks). This allows XRP holders to use their assets in decentralized finance (DeFi) strategies, which increases demand for FLR since it’s needed to pay transaction fees and as collateral.

Why it matters: The growth of FXRP directly increases FLR’s usefulness because minting FXRP requires FLR tokens. Institutional interest is growing too—VivoPower recently committed $100 million in XRP on Flare (CoinGape), signaling confidence in the XRPFi ecosystem.

What to watch: Keep an eye on FXRP’s Total Value Locked (TVL), which has risen 25% since mid-September 2025 (Messari).

2. Technical Recovery (Mixed Signals)

What’s happening: FLR’s Relative Strength Index (RSI) values (RSI14 at 35.46 and RSI21 at 38.54) suggest the token is oversold, meaning it may be undervalued in the short term. The price is holding above the 24-hour pivot point of $0.0177, with buyers defending the $0.0158 to $0.0175 range.

Why it matters: This bounce is a short-term relief after a 25% monthly drop. However, some technical indicators like the MACD histogram and the 30-day moving average suggest resistance ahead, meaning the upward momentum might be limited.

Key levels: If FLR closes above $0.0187 (7-day moving average), it could continue to rise. But falling below $0.0158 might lead to testing the lows seen earlier in 2025.

3. Market Sentiment (Neutral Impact)

What’s happening: FLR’s recent price increase happened even as the overall crypto market shows fear (Fear & Greed Index at 27) and Bitcoin holds a dominant 58.89% market share. Traders are selectively buying altcoins like FLR that have strong use cases.

Why it matters: FLR’s connection to XRPFi and its low trading volume (1.06%) make it a higher-risk, higher-reward option in a cautious market. However, Bitcoin’s dominance is decreasing slightly (-6.23% over the month), which could mean altcoin rallies might not last long.

Conclusion

FLR’s recent gains reflect a combination of technical recovery and progress in its XRPFi ecosystem. While increased FXRP adoption and staking reduce selling pressure, the overall market uncertainty and FLR’s downward monthly trend suggest investors should be cautious.

What to watch: Will FLR maintain its price above $0.0175 alongside continued growth in FXRP’s TVL? Or will broader economic concerns, like worries in the banking sector, cause more selling pressure?

What could affect the price of FLR?

Flare’s price depends largely on how widely XRPFi is adopted, the success of DeFi rewards, and overall market mood.

1. XRPFi Growth – Minting FXRP locks up XRP, reducing supply and increasing FLR’s usefulness (positive).
2. DeFi Rewards – 2.2 billion FLR tokens are set aside to encourage liquidity, but too many tokens could lower value (mixed).
3. Market Mood – High fear in crypto markets and weak altcoin performance add risks (negative).

Deep Dive

1. XRPFi Adoption & FXRP Growth (Positive Impact)

Overview: Flare’s FAssets system lets XRP holders create FXRP tokens to earn DeFi rewards without selling their XRP. As of September 2025, over $43 million worth of XRP has been bridged this way. Big players like VivoPower investing $100 million in XRP and Uphold joining the network show growing interest.

What this means: More FXRP activity means FLR is used more as collateral and for transaction fees, while locking up XRP reduces selling pressure on both XRP and FLR. If this trend continues, FLR’s price could approach its 2024 high of $0.028 (Messari).

2. DeFi Rewards & Token Supply (Mixed Impact)

Overview: Flare is offering 2.2 billion FLR tokens from July 2025 to July 2026 to reward liquidity providers and stakers. However, there are still 19.4 billion FLR tokens in cross-chain pools, which could cause price dilution if demand doesn’t keep up.

What this means: The total value locked (TVL) in the network grew 25% after the rewards started, which helps offset token inflation. But for FLR’s price to keep rising, more tokens need to be burned (destroyed) daily—currently between 4,000 and 7,000 FLR—to reduce supply faster than new tokens enter the market.

3. Market Mood & Altcoin Weakness (Negative Impact)

Overview: Bitcoin controls 58.9% of the crypto market, and the crypto fear index is at an “extreme fear” level of 27. FLR’s price dropped 25% in the last 30 days. Its price moves closely with XRP and Bitcoin, making it vulnerable to overall market sell-offs.

What this means: Until the Altcoin Season Index improves from its current low of 23 (favoring Bitcoin), FLR will likely struggle to break free from broader market pressures. This is especially true with recent crypto outflows, like $536 million worth of Bitcoin leaving ETFs on October 17.

Conclusion

FLR’s outlook over the next year depends on how well its unique features perform against a cautious market. Keep an eye on FXRP’s total value locked and how many FLR tokens are burned daily to see if demand can outpace new token supply. The big question: can Flare’s XRPFi story gain enough momentum to challenge Bitcoin’s dominance before 2026?

What are people saying about FLR?

Flare’s community is excited about its practical uses, XRPFi memes, and rewards from staking – but technical traders are watching for resistance levels. Here’s what’s trending:

1. FLR’s token burn system and 70% staking rate support optimistic outlooks
2. XRPFi integration fuels memes and talks of a Ripple partnership
3. Revolut’s Learn & Earn campaign sparks discussions on retail adoption
4. Golden cross breakout splits analysts on future price targets

Deep Dive

1. @FlareNetworks: FLR utility reaches new highs (positive)

“Gas fees burned daily (4K–7K FLR)… 70% of circulating FLR staked/delegated.”
– @FlareNetworks (382K followers · 1.2M impressions · 2025-07-16 16:55 UTC)
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What this means: This is good news for FLR because burning tokens reduces supply, and staking locks up a large portion of tokens. Together, these factors can create upward pressure on the price as fewer tokens are available for trading.

2. @KingKaranCrypto: Ripple connections spark speculation (positive)

“Ripple invested pre-launch… FLR at $0.02? 😂”
– @KingKaranCrypto (89K followers · 287K impressions · 2025-09-03 10:12 UTC)
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What this means: Traders are optimistic about FLR’s potential deeper integration with the XRP ecosystem, although there have been no recent official partnership announcements to confirm this.

3. @SpotXrp: XRPFi memes gain popularity (neutral to positive)

“Normal buses vs Flare buses – choose your ride $FLR $XRP”
– @SpotXrp (64K followers · 184K impressions · 2025-10-03 22:58 UTC)
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What this means: The growing meme culture around XRPFi shows increasing community interest, but it doesn’t necessarily reflect fundamental progress in the project.

4. CoinJournal: Technical indicators warn of resistance (negative)

“FLR’s 25% pump faces resistance at $0.027 – RSI overbought at 76” (2025-07-23)
View article
What this means: Short-term outlook is cautious as technical data suggests traders expect a price pullback despite growth in decentralized finance (DeFi) on the Flare network.

Conclusion

The overall outlook for FLR is optimistic but cautious. Strong usage stats and ecosystem growth are balanced by technical resistance and the risk of profit-taking. Keep an eye on the $0.017 support level this week: holding this level could confirm a bullish golden cross pattern, while falling below it might lead to sell-offs. Tracking XRPFi adoption and daily FLR token burns (available on FlareScan) will be important to understand the project’s long-term health.

What is the latest news about FLR?

Flare is navigating a volatile market while expanding XRP’s use in decentralized finance (DeFi). Here are the key updates:

1. XRP Supply Tightens Through Flare (October 17, 2025) – Over $11 million worth of XRP is locked in Flare’s FXRP protocol, reducing available supply and increasing DeFi activity.
2. FLR Drops 9.7% Amid Crypto Market Sell-Off (October 17, 2025) – A broad market downturn pushed FLR’s price down to $0.0175.
3. Firelight Protocol Makes Progress (October 16, 2025) – Flare’s CEO hints at a liquid staking solution for billions of XRP.

In-Depth Look

1. XRP Supply Tightens Through Flare (October 17, 2025)

What happened: More than 4 million XRP tokens, valued at $11.2 million, were locked in Flare’s FXRP protocol. This means these XRP are temporarily taken out of circulation. XRP holders can now mint FXRP tokens to earn rewards through yield farming on Flare, without selling their XRP. According to Messari, the total value locked (TVL) in FXRP has grown by 25% recently.
Why it matters: With fewer XRP available for trading, the price could rise if demand increases. This also strengthens Flare’s position in helping XRP grow in the DeFi space. Big players like VivoPower plan to invest over $100 million using Flare’s platform. (NewsBTC)

2. FLR Drops 9.7% Amid Crypto Market Sell-Off (October 17, 2025)

What happened: FLR’s price fell 9.7% in one day, following Bitcoin’s 13% drop over the past week. The sell-off was triggered by more than $1 billion in crypto liquidations and concerns about the banking sector. While FLR is down 25% over the past month, it’s still up 18% for the year.
Why it matters: FLR’s price is closely linked to overall market trends. If FLR falls below $0.016, it could face further losses. However, regaining $0.020 might help stabilize the token. (CoinJournal)

3. Firelight Protocol Makes Progress (October 16, 2025)

What happened: Flare’s CEO, Hugo Philion, discussed Firelight, a new liquid staking system for XRP. This protocol aims to unlock “billions of XRP” by allowing holders to earn rewards while keeping their tokens liquid through stXRP tokens.
Why it matters: Firelight could attract large XRP holders looking for compliant ways to earn yield. This may increase demand for FLR as collateral. Early testing on Songbird, Flare’s test network, showed fast adoption of FXRP. (YouTube Interview)

Conclusion

Flare is facing challenges from market volatility but is making important strides in expanding XRP’s DeFi capabilities. The reduction in XRP supply and progress with Firelight highlight its growing utility. FLR’s price remains sensitive to broader market conditions. The big question is whether institutional interest in Flare’s platform will balance out retail selling pressure in the final quarter of the year.

What is expected in the development of FLR?

Flare is making steady progress with these key milestones:

1. FAssets Mainnet Launch (Q4 2025) – Final release after audits, enabling XRPFi and cross-chain decentralized finance (DeFi).
2. LayerCake Protocol Activation (2025) – Allows complex transactions across different blockchains.
3. Flare Data Connector Expansion (2025) – Adding data from Bitcoin, Dogecoin, and AI/ML sources.
4. XRPFi Ecosystem Growth (2026+) – Building partnerships and introducing stXRP for liquid staking.

In-Depth Look

1. FAssets Mainnet Launch (Q4 2025)

What is it?
FAssets is Flare’s system to create digital tokens representing assets that don’t have smart contract capabilities, like XRP. It’s currently in the final audit stage (FlareNetworks, August 2025). After fixing any issues found during audits, it will launch on Flare’s main network. This follows successful testing on the Songbird test network, where $2 million worth of FXRP tokens were created in just four days.

Why does it matter?
This is positive for FLR because using FAssets requires FLR tokens as collateral and to pay fees, which increases FLR’s usefulness. It also opens up the $28 billion XRP market to Flare’s DeFi ecosystem, which could lead to more total value locked (TVL) and higher demand for FLR. However, there are risks like delays in security approvals or low adoption by XRP holders.

2. LayerCake Protocol Activation (2025)

What is it?
LayerCake is a protocol that enables “atomic” transactions across different blockchains. This means you could, for example, swap XRP for Ethereum (ETH) without relying on traditional bridges, making cross-chain transactions smoother and more secure.

Why does it matter?
This development is somewhat positive because it positions Flare as a hub for multi-chain DeFi activities. However, its success depends on integrating major blockchains like Ethereum and Solana, which might take until 2026. While it could attract developers, Flare will face competition from other projects already working on cross-chain interoperability.

3. Flare Data Connector Expansion (2025)

What is it?
The Flare Data Connector (FDC) currently supports 18 types of data across three Ethereum Virtual Machine (EVM) compatible blockchains. Plans are underway to add data from Bitcoin, Dogecoin, and traditional web APIs, as well as outputs from artificial intelligence and machine learning models (Flare Network, July 2025).

Why does it matter?
This is a positive long-term development because decentralized access to diverse data strengthens Flare’s position in supporting decentralized apps (dApps) that rely on real-world data, such as prediction markets and real-world assets (RWAs). In the short term, growth depends on bringing more data providers into the network beyond the current 86.

4. XRPFi Ecosystem Growth (2026+)

What is it?
Flare plans to grow XRPFi, a DeFi ecosystem tailored for XRP holders. This includes partnerships like VivoPower’s $100 million XRP treasury deployment and tools like stXRP, which lets users stake FXRP tokens while still being able to use them, earning rewards at the same time.

Why does it matter?
This is positive if institutional interest picks up, but there are risks if XRP faces regulatory challenges. The 2.2 billion FLR token incentive pool (FAssets Program) could boost liquidity but might also increase selling pressure if not managed carefully.

Conclusion

Flare’s roadmap aims to establish it as a data-driven DeFi platform bridging non-EVM assets, with FAssets and LayerCake as key near-term drivers. Long-term success depends on attracting institutional users to XRPFi and overcoming technical challenges. The big question remains: can Flare’s hybrid oracle model outperform competitors like Chainlink in supporting cross-chain ecosystems?

What updates are there in the FLR code base?

Flare's development team is actively improving the network with upgrades focused on better performance and stronger security.

1. Avalanche Core Upgrade (June 26, 2025) – Updated to Avalanche version 1.11.0 to improve how the network reaches agreement and communicates.
2. Testnet Security Preparation (June 13, 2025) – Released a test version to check security improvements before the main network update.
3. EVM Signing Standardization (November 29, 2024) – Added support for MetaMask-style transaction signing to make wallet use easier.

Detailed Overview

1. Avalanche Core Upgrade (June 26, 2025)

What happened:
Flare upgraded its core system to Avalanche 1.11.0, which improves how the network confirms transactions and how nodes (computers running the network) communicate with each other.

This update brings Flare and Songbird in line with Avalanche’s latest improvements for faster transaction finalization and better peer-to-peer connections. Node operators need to update their software by July 22, 2025 (Songbird) and August 5, 2025 (Flare) to avoid syncing problems.

Why it matters:
This upgrade is positive for FLR because it helps keep the network stable during busy times, like when decentralized finance (DeFi) activity spikes. Users will experience quicker transaction confirmations and fewer dropped blocks.
(Source)

2. Testnet Security Preparation (June 13, 2025)

What happened:
A test version (v1.11.0-testnet) was released on the Coston test network to try out security improvements before applying them to the main network.

This update temporarily disabled certain validator transactions to reduce potential attack points and fixed vulnerabilities found in remote procedure call (RPC) endpoints during security audits.

Why it matters:
This is a routine but important step for FLR’s security. While it doesn’t directly impact users, it helps prevent future attacks by strengthening the network’s defenses early on. This builds trust, especially for institutions using Flare’s DeFi services.
(Source)

3. EVM Signing Standardization (November 29, 2024)

What happened:
Flare added Ethereum-style transaction signing for its P-chain operations, using the “\x19Ethereum” prefix. This makes Flare compatible with popular wallets like MetaMask.

Why it matters:
This update is good news for FLR because it makes it easier for Ethereum developers to use Flare without needing special wallet setups. Simplifying wallet interactions can speed up the creation of decentralized apps (dApps) on Flare.
(Source)

Conclusion

Flare’s recent updates focus on making the network more compatible with Avalanche, improving security through thorough testing, and enhancing user experience with wallet compatibility. These changes help position FLR as a developer-friendly blockchain, especially as activity in the XRPFi ecosystem grows. It will be interesting to see how many node operators upgrade their software by the deadlines and how that affects network participation.