A Twitter account notices a surge in XRP burns.
Before panic ensues, Ripple software engineer explains the situation.
He explains the reason behind the incident and says it is not worrisome.
Recent data shared by the Twitter account 24HRSCRYPTO has revealed a surging fall in the total supply of XRP over the past month. Approximately 247,016 XRP tokens underwent a permanent burn and removed from circulation during this period. This amounts to around 8,233 tokens burned per day.
https://twitter.com/illneil/status/1676404222181675009
Neil Hartner, a senior software engineer at Ripple, took to Twitter to shed light on the reason behind this unexpected surge in XRP burn. He explains that the reduction in supply was a result of account deletions on the XRP Ledger network. Thus, with each account deletion, we get the burning of two XRP tokens.
Additionally, Hartner clarifies that the focus of these account deletions was primarily on old accounts that previously held a balance of 20 XRP. Previously, this used to be the required reserve amount.
One significant event that contributed to this phenomenon was the actions taken by Poloniex in June 2023. The popular cryptocurrency exchange deleted a staggering 85,566 outdated XRPL accounts, resulting in the burning of 171,132 XRP tokens.
However, according to Hartner, this process has now been completed, indicating that similar-scale account deletions are unlikely to continue in the near future.
The decrease in XRP's total supply through this recent burn has raised questions about its impact on the token's value and potential implications for the network. While the precise consequences are difficult to predict, this event has sparked discussions within the XRP community.
Some believe that the reduced supply could potentially create scarcity, driving increased demand and positively impacting the token's value. However, skeptics argue that the supply reduction may not have a significant effect on market dynamics, suggesting that other factors like adoption and regulatory developments play a more significant role.
As the XRP community analyzes the implications of this supply reduction, market observers will closely monitor trading patterns, investor sentiment, and overall market behavior in the coming weeks to assess any notable shifts.
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The post Recent Rise in XRP Burns Is Nothing to Panic About appeared first on Crypto News Land.
