- Upwards of 90,000 outdated XRP user accounts have been deleted.
- The account deletions in a burn of over 247,000 XRP tokens, equating to some $116,000.00.
In a surprising turn of events, the XRP cryptocurrency has recently witnessed a significant decrease in its total supply, capturing the interest of digital currency enthusiasts and investors.
This unexpected burn, brought to attention by the Twitter account 24HRSCRYPTO, has shed light on a remarkable occurrence involving the deletion of user accounts within the XRP Ledger network.
Revealing the XRP Token Burn
According to data extracted from the XRP Ledger Explorer, there has been a noticeable decline in the total supply of XRP. For 30 days, approximately 247,016 XRP tokens have been permanently removed from circulation, resulting in an average daily burn rate of around 8,233 tokens.
This sudden reduction has sparked curiosity about its potential impact on the token’s value and the driving factors behind this unexpected development.
The decrease in supply has been attributed to a series of account deletions within the XRP Ledger network, where each deletion resulted in the burning of two XRP tokens. The primary focus of these deletions was older accounts that previously held a balance of 20 XRP, which was the previous account reserve requirement.
A significant event contributing to this phenomenon occurred in June 2023, involving the actions of the cryptocurrency exchange giant, Poloniex. During this period, Poloniex eliminated an astonishing 85,566 outdated XRPL accounts, burning 171,132 XRP tokens.
Implications and Speculations
The substantial decrease in XRP’s total supply, driven by account deletions and token burns, holds critical implications for the XRP ecosystem. This event exemplifies ongoing efforts toward network optimization, highlighting the cryptocurrency’s potential for enhanced efficiency and stability.
Some speculators suggest that such a significant burn could positively impact the token’s value, while others emphasize the optimization of the network as a favorable outcome.
It is important to note that the amount of XRP burned is relatively small compared to the overall supply of XRP in circulation. Additionally, the actions taken by Poloniex, involving the deletion of many outdated XRPL accounts, may have unintended consequences. As the account deletions related to Poloniex have concluded, it is unlikely that a similar scale of deletions will continue soon.
Conclusion
The recent XRP token burn resulting from account deletions within the XRP Ledger network reveals Ripple’s ongoing efforts to optimize the network and improve efficiency. The reduction in XRP’s total supply raises questions about its potential impact on the token’s value while also showcasing the cryptocurrency’s stability and potential for enhanced performance.
