HomeNewsXRP Ledger Marks Monumental 12 Million Token Burn, XRP Value Rises

XRP Ledger Marks Monumental 12 Million Token Burn, XRP Value Rises

- Advertisement -
  • The XRP Ledger has achieved a significant milestone by burning over 12 million XRP tokens, contributing to a recent 5.81% increase in XRP’s value.
  • This token burn, designed to deter network spam, represents a minuscule fraction of the total supply but signals robust activity on the XRP Ledger.

In a notable development for the XRP ecosystem, the XRP Ledger (XRPL) has crossed a significant threshold with the cumulative amount of XRP tokens burned exceeding 12 million. This milestone, as reported by leading blockchain explorer service XRPScan, has coincided with a 5.81% rise in the value of XRP, underscoring the dynamic nature of this digital asset.

Understanding the Impact of Token Burn

The concept of token burning in the cryptocurrency world involves the permanent removal of existing cryptocurrency tokens from circulation. This process, executed through the XRP Ledger, has led to the incineration of 12,001,657 XRP tokens from the ledger’s maximum total supply of 100 billion. As highlighted by Panos Mekras, co-founder of Anodos Finance, this development has been closely monitored and reported by various blockchain analysis tools like Burntracker.io.

Analyzing the Burned Tokens

At the time of Mekras’ announcement, the burn figure stood at 12,000,840 tokens. However, a subsequent report from Burntracker.io indicated a further burn of 2,771 tokens within 24 hours, taking the total to 12,003,611 XRP tokens. This rapid burn rate, particularly in the last hours and days of the period observed, signifies robust activity within the XRP ecosystem.

In monetary terms, based on XRP’s market price of approximately $0.6, the value of the burned tokens is estimated at over $7.2 million. Despite the significant number of tokens burned, they represent just a small fraction—about 0.02%—of XRP‘s circulating supply and an even smaller percentage of its total maximum supply.

XRPL Burn Mechanism and Its Implications

The XRPL employs a burn mechanism as a strategy to mitigate spam transactions. This mechanism functions by destroying a tiny fraction of XRP through transaction fees, which are set at 10 drops per transaction. Given that 1 XRP equals 1,000,000 drops, this results in a burn of 0.00001 XRP per transaction.

This burn rate, though minimal, has a cumulative impact over time. The sustained increase in the burn rate observed in recent months, particularly during December 2023, was attributed to a spike in transaction volumes on the XRPL, possibly due to increased interest in inscriptions and other activities on the network.

At the current trading price of $6.004 and with the recent 5.81% increase in value, XRP continues to show strong performance in the cryptocurrency market. The ongoing token burn, while representing a minute portion of the total supply, is a key factor in this digital currency’s ecosystem, signaling active and continued use of the XRPL.

Disclaimer: ETHNews does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. Readers should do their own research before taking any actions related to cryptocurrencies. ETHNews is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned.
Marcel Knobloch
Marcel Knobloch
Marcel is the managing partner of ETHNews and is also known as Collin Brown in the crypto community. He is a seasoned Bitcoin investor who entered the crypto scene during its early stages and has since become a veteran trader in both the cryptocurrency and forex markets. His journey began in 2012 when he made his first investment in Bitcoin, marking the beginning of his deep-rooted passion for blockchain technology and digital assets. With a mission to demystify the intricacies of blockchain for the masses, Marcel endeavors to bring the world of cryptocurrencies closer to everyone. His insightful reports are dedicated to shedding light on the latest developments and innovations within the realms of Bitcoin, Ethereum, Ripple (XRP), IOTA, VeChain, Cardano, Hedera, and numerous other cryptocurrencies. Marcel's in-depth analysis and commitment to providing accessible information make him a trusted source for both novice and experienced crypto enthusiasts. Marcel's academic background includes a Master's Degree in Business Education, which has equipped him with a solid foundation in financial markets and investment strategies. Over the past decade, he has amassed invaluable experience working with various startups across the globe, enriching his knowledge and understanding of the ever-evolving cryptocurrency landscape. With his wealth of expertise and dedication to empowering others with crypto knowledge, Marcel continues to be a driving force in the cryptocurrency community. Business Email: marcel.knobloch@hotmail.com Phone: +49 160 92211628