A surge in XRP burns, resulting from account deletions on the XRP Ledger network, raises questions and speculation within the crypto community.
Key Points
- Surge in XRP burns captures attention, with approximately 247,000 tokens mysteriously burned, causing confusion among crypto enthusiasts.
- Daily burn rate of XRP highlighted, averaging around 8,233 tokens per day in the past month.
- Burns result from account deletions on the XRP Ledger network, specifically targeting old accounts with a balance of 20 XRP.
- Experts speculate on the potential impact of increased scarcity on the price of XRP, awaiting further updates and clarifications from Ripple.
A surge in XRP burns has captured the attention of the cryptocurrency community. Approximately 247,000 XRP tokens were mysteriously burned, leading to confusion among crypto enthusiasts.
This is mostly the result of XRPL account deletions. Each account deletion burns 2 XRP. In June 2023, Poloniex alone deleted 85,566 old XRPL accounts which burned 171,132 XRP. They have finished deleting accounts. https://t.co/07M1IpGkYw https://t.co/cA5mVUVbGR
— Neil Hartner (@illneil) July 5, 2023
Surge in XRP Burn Rate
The Twitter account 24HRSCRYPTO recently highlighted the daily burn rate of XRP, which refers to the number of tokens burned each day. According to the account, 30 days ago, the total supply of XRP was 99,988,863,851 tokens. In the past month, around 247,016 XRP tokens have been permanently burned, resulting in an average daily burn rate of about 8,233 tokens.
It’s worth mentioning that as the value of XRP increases, the burn rate is expected to decrease. Some optimistic individuals even speculate that XRP could reach a value of $100 per token in the future.
To shed light on this mysterious surge in XRP burns, Neil Hartner, a lead software developer at Ripple, addressed the issue on Twitter. Hartner revealed that the burns were a result of account deletions on the XRP Ledger network, with each deletion leading to the burning of two XRP tokens.
The focus of these account deletions was primarily on old accounts that previously held a balance of 20 XRP, which was the previous account reserve amount. This targeted approach provides insights into the specific accounts affected by the burning process.
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Experts Point of View
Experts believe that this event could potentially lead to increased scarcity, which may impact the price of XRP. However, it is important to approach immediate conclusions with caution.
One significant factor contributing to this situation was the actions taken by Poloniex, a popular cryptocurrency exchange, in June 2023. They deleted 85,566 outdated XRPL accounts, resulting in the burning of 171,132 XRP tokens.
Neil Hartner, a Ripple engineer, has stated that the process of deleting accounts and burning tokens has been completed. The XRP community eagerly awaits further updates and clarifications from Ripple regarding this burning process.
In conclusion, the recent spike in XRP burns has raised questions within the crypto community. The burns are a result of account deletions on the XRP Ledger network, with each deletion causing the burning of two XRP tokens. While experts speculate about the potential impact on scarcity and price, it is important to await further updates from Ripple for a clearer understanding of the situation.
