XRP Burn Rate Soars: Why This Matters

A recent surge in XRP’s activity, reflected by its increasing burn rate, has piqued market interest. On-chain data reveals a steady increase in the number of XRP tokens being burned as fees, with daily burn levels occasionally hitting 4,000 XRP in May. This spike suggests higher network utilization, indicating more users are actively engaging with the blockchain. A rise in a token’s burn rate typically signifies an increase in network usage, which could indicate positive fundamentals. However, this sudden surge in XRP’s burn rate may signal a price retracement if it turns out to be driven by fleeting hype rather than sustained demand.