- XRP’s total supply has experienced a drop in the past 30 days.
- Poloniex has contributed to the drop with a substantial burn of XRP tokens.
- Accounts on the XRP Ledger have been getting deleted.
Recently, the XRP cryptocurrency has witnessed a significant decrease in its total supply, capturing the attention of digital currency enthusiasts and investors alike. The revelation, brought to light by the Twitter account 24HRSCRYPTO, has unveiled a fascinating phenomenon involving account deletions within the XRP Ledger network.
Unprecedented XRP Token Burn Sparks Market Speculation
This captivating development has sparked discussions and speculations regarding the potential impact on XRP’s value and the underlying reasons behind this unexpected burn.
Data extracted from the XRP Ledger explorer reveals a noteworthy decrease, with approximately 247,016 XRP tokens permanently eliminated from circulation during this 30-day period. This equates to an average daily burn rate of roughly 8,233 tokens.
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Neil Hartner, an esteemed senior staff software engineer at Ripple, took to Twitter to clarify the underlying cause behind this unexpected surge in XRP burn. He attributed the reduction in supply to a series of account deletions within the XRP Ledger network, whereby each deletion resulted in the burning of two XRP tokens.
Hartner disclosed that these account deletions predominantly targeted older accounts that previously held a balance of 20 XRP, which was the previous account reserve requirement.
Elimination of 85,566 Outdated XRPL Accounts
The sudden decline in the cryptocurrency’s total supply has piqued the curiosity of XRP enthusiasts and investors. Some speculate that such a substantial burn could impact the token’s value, while others interpret it as a positive sign of network optimization.
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One notable event contributing to this phenomenon occurred in June 2023, involving the actions of the cryptocurrency exchange giant, Poloniex. Reportedly, they eliminated a staggering 85,566 outdated XRPL accounts, significantly burning 171,132 XRP tokens.
However, as confirmed by the Ripple engineer, this process has now concluded, suggesting that the account deletions will unlikely continue on the same scale in the foreseeable future.
On the Flipside
- The burn amount is relatively small compared to the total supply of XRP in circulation.
- The actions taken by Poloniex, involving the deletion of a large number of outdated XRPL accounts, might have unintended consequences.
Why This Matters
The substantial decrease in XRP’s total supply, attributed to account deletions and token burns, holds critical implications for the XRP ecosystem. This event showcases ongoing efforts toward network optimization and highlights the cryptocurrency’s potential for enhanced efficiency and stability.
To learn more about the timeline confusion surrounding the Ripple SEC lawsuit, read here:
Ripple-SEC Lawsuit: Attorney John Deaton Clears Up Timeline Confusion
To delve into the debate over alleged hypocrisy surrounding Coinbase’s stance on XRP, read here:
Coinbase’s Controversial XRP Stance Sparks Hypocrisy Outrage
