XRP network activity is still affected by the prolonged volatility seen across the broad crypto market recently.
While momentum has seen a sudden shift, and leading cryptocurrencies, including XRP, are seeing massive increases in their price over the past day, the XRP burn rate has only declined during the period.
According to data from a crypto analytics platform, XRP’s burn rate has declined by about 2% over the last 24 hours, sitting at 536 XRP as of Feb. 14.
Notably, this decline in the XRP daily burn volume suggests a significant reduction in its network activity, influenced by the recent crypto market downturn, which lasted for weeks.
XRP surges 5.08%
While the XRP burn metric does not often prove to be a key determinant of its potential price action, the asset’s price movement shows an extreme contraction in its network performance.
Although the massive slowdown in the metric shows an overall downtrend in XRP’s on-chain movements, XRP has seen its price surge massively over the same period.
Over the last 24 hours, XRP has surged by a massive 5.08% and is trading at $1.46 as of writing time, a notable increase from levels recorded over the past days.
Historically, slowdowns like this fee-driven burn activity have often come at a time when the broader crypto market is slipping into another pullback phase. However, the case is different this time, sparking concerns about the sustainability of the ongoing price surge.
Although it is difficult to tell if the declining network activity could interrupt XRP’s current price surge in any way, holders are optimistic that this resurgence can carve XRP’s path to reclaim $2.
Vladislav Sopov
Dan Burgin