XRP Burn Rate Nears Zero: Implications for Network and Price
XRP Burn Rate Nears Zero: Implications for Network and Price
The burn mechanism, a foundational feature for many cryptocurrencies designed to control supply and potentially increase scarcity, is currently a subject of intense scrutiny within the XRP ecosystem. Recent on-chain data indicates a dramatic and concerning decline in XRP's daily burn rate, approaching near-zero levels. This significant shift raises critical questions about the network's activity, its long-term token dynamics, and how such changes might influence investor sentiment and price stability. A Steep Decline in Burn Activity Detailed on-chain metrics provided by CryptoQuant paint a clear picture of this alarming trend. Historically, XRP's burn activity was robust, routinely removing thousands of coins from circulation daily. However, this once-active process has almost entirely ceased in recent weeks, particularly throughout August and September. This collapse is particularly noteworthy as it reflects a substantial change in the contributing factors to XRP's ove…