Recently, there has been an extraordinary increase in the burning of XRP tokens on the XRP Ledger network, at a level not seen since mid-January.
The most recent statistics from XRP Scan shows that a staggering 6,721.92 XRP were burnt as commissions, which is an astounding 104% rise from the day before.
The sharp increase of burns coincides with the token’s impressive price rise. The price of XRP has increased by more than 15% just this week, creating a striking weekly candle on its price chart. Even after a brief loss earlier in the day when a surge of sales briefly erased over 9% of the gains, purchasers’ tenacity quickly drove the price back up to $0.624 per token.
There is more to this spike in XRP burn activity than meets the eye. It is a direct result of the precautions taken to protect the XRP Ledger against denial-of-service and spam attacks. A tiny fee known as XRP is applied to each transaction on the network as a preventive measure against hostile actors flooding the system.
The cost of transactions rises with network activity, making deliberate or unintentional network disruptions prohibitively expensive.
The sharp rise in XRP burn activity is evidence of the rising interest and demand for cryptocurrencies. Trading volumes and transaction costs are rising as a result of investors and enthusiasts alike seizing the chance as prices are skyrocketing and market sentiment is strong.
