XRP has recently seen a sharp surge in its network activity, recording significant increases in its daily burn rate in the past week.
While its price has remained weak, showing little-to-no major increases recently, XRP’s network usage remains strong, as it has recorded a sharp spike in its burn rate over the past day.
The surge in the XRP network usage is most evident in its burn metric, which has spiked rapidly regardless of weak price movement.
XRP burn rate explodes
As of Friday, April 3, data from crypto analytics platform Cryptoquant shows that the amount of XRP burned as fees has surged to 1,031 XRP.
While it has only recorded 474 XRP in the previous day, this marks a massive increase of 171.6% in the XRP burn rate within just 24 hours.
Considering the extended crypto market volatility, it is unlikely that the burn rate surge is attributable to the market trend; however, it could also signal a shift in investor sentiment.
The surge in the amount of XRP burned as fees seen over the last day marks the highest burn rate increase seen so far since the new month began.
Although XRP is still yet to show any major price recovery, the surge in the burn metric, which is often fueled by surging investor demand, shows that XRP is increasingly becoming scarce.
With such activity, XRP Ledger is seeing an increase in the amount of the tokens permanently removed from circulation, potentially boosting its value.
XRP remains low
Despite the surge in the XRP burn rate, XRP has only reflected a mild increase in its price over the last day.
The asset has reversed greatly from its recent high around $1.70 and it is currently hovering around the $1.31 level as selling pressure remains high.
Nonetheless, XRP might be at the verge of a major price rebound as its strong network usage could fuel an increase in its price.
Dan Burgin
U.Today Editorial Team
Vladislav Sopov
