A significant spike in XRP burns has caught the attention of the crypto community. Approximately 247,000 XRP tokens were mysteriously burned, leaving the crypto community perplexed.
The Twitter account 24HRSCRYPTO recently highlighted the daily burn rate of XRP, which is the number of tokens burned each day. It mentioned that 30 days ago, the total supply of XRP was 99,988,863,851 tokens. During this period, approximately 247,016 XRP tokens have been permanently burned and taken out of circulation. On average, about 8,233 tokens have been burned each day.
However, it is important to note that as the value of XRP increases, the burn rate is expected to decrease. Some enthusiasts even speculate that XRP could reach a value of $100 per token in the future.
Lead Ripple Developer Reveals Reason for XRP Supply Drop: Account Deletions and Token Burning
To shed light on this mysterious XRP burn spike, Neil Hartner, a lead software Developer at Ripple. Hartner took to Twitter to clarify the cause behind this unexpected reduction in supply. He revealed that the burn is a result of account deletions on the XRP Ledger network, with each deletion leading to the burning of two XRP tokens.
Hartner further disclosed that 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.
Some experts speculate that this event could lead to increased scarcity, which may have an impact on its price. However, it’s important to be cautious about drawing immediate conclusions.
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 They deleted 85,566 outdated XRPL accounts, resulting in the burning of 171,132 XRP tokens, resulting in the burning of a substantial amount of XRP tokens.
Neil Hartner, a Ripple engineer, has stated that the process of deleting accounts and burning tokens has been completed. The XRP community is eagerly awaiting further updates and clarifications from Ripple regarding this burning process.
