The volume of XRP bridged by market participants to the Coreum network has surged by 2,703%, reaching 1.6 million tokens within a span of two weeks.
Since the launch of the Coreum blockchain last March, the team behind the project has continued to make efforts toward interoperability with other chains. The latest effort involved the introduction of a two-way bridge between Coreum and the XRP Ledger (XRPL).
Data indicates that the bridge, which facilitates seamless movement of XRP and other assets between the XRPL and Coreum, has continued to garner attention from network participants. This has resulted in the Coreum ecosystem welcoming over 1 million XRP tokens.
It bears mentioning that the bridge functionality went live on March 12, but access was limited. However, The Crypto Basic reported that the number of XRP holders on Coreum spiked 2,287% to 191 on March 22, with the total number of bridged XRP tokens sitting at 57,191, two days after the public launch of the bridge on March 20.
Coreum Now Home to 1.6M+ XRP
Since then, network participants have continued to leverage the bridge, with the Sologenic team confirming in a recent post that the amount of XRP tokens on Coreum has crossed the 1,600,000 million mark.
Over 1,600,000+ $XRP are living on the @cosmos ecosystem using the XRPL Coreum Bridge.
Supercharge your XRPL-native assets today.
🌉: https://t.co/slbv3wKNS5#GoSolo #BridgeToTheCore pic.twitter.com/5RTRGYRMys
— Sologenic (@realSologenic) April 8, 2024
The latest data from Coreum’s official blockchain explorer indicates that the Coreum ecosystem is now home to exactly 1,603,209 XRP tokens. This figure represents an impressive 2,703% increase in XRP tokens domiciled on the network since March 22.
Notably, these 1.6 million XRP tokens are held by 464 addresses on Coreum, with the total number of holders representing a 142% increase from the figure recorded during the previous report. Interestingly, nearly 1.2 million of the 1.6 million XRP is in liquidity pools on Coreum-based DEX Pulsara.
And close to 1.2 million of that $XRP is in Liquidity Pools in #PulsaraDAX, generating rewards! #SARA #DAX https://t.co/CrRrH6E4dP
— Pulsara (@pulsara_io) April 9, 2024
An Imminent Supply Shock?
The recent disclosure has sparked reactions from the XRP community, as the movement of XRP tokens to Coreum could help take off more tokens from the market. For context, when a user bridges XRP to Coreum, the actual XRPL-based XRP tokens are locked in the bridge contract.
The bridge then mints an equivalent of the XRP tokens on Coreum. Despite receiving the equivalent of XRP on Coreum, market participants would not be holding their XRPL-based XRP. This phenomenon keeps the XRPL-based XRP locked in the bridge contract, keeping them from the market and reducing supply.
Media personality Zach Rector called attention to this in a response to Coreum’s disclosure. He stressed that his previous projection of an imminent XRP supply shock could materialize. According to him, this would occur with more bridges and increased XRP burns as adoption leads to a rise in on-chain activity.
Wow! Y’all that I was playing when I said there would be an #XRP Supply Shock!
This is just the start of bridges, DeFi and XRP being locked up! Also, as activity picks up, more XRP is being BURNED! 🔥 https://t.co/hr3wQf0qjS— Zach Rector (@ZachRector7) April 9, 2024
Interestingly, several XRP community figures, including Ghostpunch Games’ Chad Steingraber, previously expressed similar sentiments regarding a looming supply shock for XRP.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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