XRP’s daily burn rate skyrockets, fueling speculations of a future $100 per token value; a senior Ripple engineer provides an interesting perspective.
In a series of tweets that caught the attention of the XRP community, popular crypto analyst and influencer 24HRSCRYPTO revealed a staggering increase in the daily burn rate of XRP, suggesting that a $100 per XRP is inescapable.
According to the tweets, just 30 days ago, the total supply of XRP stood at 99,988,863,851, but it has now dropped to 99,988,616,835, signifying a reduction of 247,016 XRP. This figure equates to approximately 8,233 XRP burned per day.
? THIS IS HUGE! MASSIVE SPIKE IN DAILY BURN RATE ? 30 days ago, #XRP's total supply was 99,988,863,851 ??today the total supply is 99,988,616,835 (247,016 XRP burned and gone forever in 30days) about 8,233 a day – which goes perfectly with the below 24HR burn rate. That number… https://t.co/OipXjajMnx
— ??????????? (@24hrscrypto1) July 4, 2023
The burn rate has shown consistency over the past month, implying a potential upward trend. Specifically, the recent 247,016 burned XRP is more than double the figure obtainable over the past month, according to the series of tracking posts from the crypto analyst.
The analyst had constantly tracked the burn rate of XRP and updated the community from at least five months back when the average incineration was about 2,800 XRP per day.
$100 Per XRP Is Inevitable
The latest burn update also suggests that these numbers could further escalate, potentially reaching higher values daily as trillions of dollars flow into the market. Nonetheless, the analyst noted that the burn rate is expected to decrease when the value of XRP rises.
With this projection in mind, the tweet boldly claims that the inevitable outcome will be XRP surging to $100 per token.
“… this number will decrease when the value of XRP goes up, so $100 per XRP is inevitable,” the well-known XRP tracker remarked, adding, “I’ve been tracking this.”
Ripple Senior Software Developer Weighs In
Furthermore, Neil Hartner, a senior staff software engineer at Ripple working on On-Demand Liquidity (ODL), shed light on the cause of the increased burn rate.
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
Hartner explained that a significant portion of the burn resulted from XRP Ledger (XRPL) account deletions, where each deletion incinerates two XRP. He noted that Poloniex, a leading crypto exchange, deleted 85,566 outdated XRPL accounts.
Recall that The Crypto Basic called public attention to this occurrence last month. A June 19 report revealed that Poloniex had deleted over 85,000 XRP wallets, recovering 1.5 million XRP and burning up to 171K+ tokens.
Meanwhile, XRP currently trades at $0.4883, gaining 1.87% over the past week, with a market valuation of over $25.5 billion.