- XRPS 14 million token burn reduces the surrounding amount of token, but the course shows little immediate effect.
- The embossing of new RLUSD tablecoins apparently compensates for XRP reduction, which indicates active liquidity management.
At XRP there was recently a strong reduction in the all -round token quantity after 14 million tokens were burned in the XRP Ledger XRPL. It was expected that this step in which the tokens were effectively pulled out of circulation would affect the price dynamics by a shortage of the offer. But the XRP course hardly rose and a clear upward trend cannot be seen.
Between June 8th and June 18th show the data of the XRPL a continuous token-burn process in which almost 14 million XRP tokens were destroyed. One burned an average of 3,650 tokens per day. The greatest combustion in one day was 4,244 tokens. While the origin of the burned tokens is still being checked, the event was wanted and transparent, and it confirms the ongoing efforts to reduce the circulating offer.
Burning token is a mechanism that serves to keep inflation small by reducing the number of tokens available on the market. For XRP, the maximum offer of which is limited to 100 billion tokens, it serves as an instrument of offer management, which is intended to increase scarcity and support the long -term value.
Rlusd quantity increased at the same time
In parallel to XRP burning, there was an increase in the RLUSD amount of 388 tokens on June 9 on over 425 tokens on June 13th, which indicates a growing stablecoin activity within the network. It is a balancing act between reducing the XRP offer and securing liquidity by issuing stable coins.
Nevertheless, a price development of XRP is hardly visible. When writing this article, XRP was traded at $ 2.02 and had increased by 2.8 % compared to the previous day. The price fluctuated within a tight span and sank below $ 2 in early trade before climbing over it. After the break -in, he approached $ 1.90 before recovering, which is more due to short -term speculations than to a persistent upward dynamics.
Market capitalization rose to around $ 119 billion, with the trading volume increasing by about 3.3 % to $ 4.36 billion in the last 24 hours. These numbers indicate increased commercial activity, but not yet up to a strong price pressure.
Current amount of token and market capitalization
The circulating offer is currently 58.93 billion XRP tokens and thus significantly below the overall offer, which amounts to 99.98 billion. The fully watered assessment, which the market capitalization represents, if all tokens were in circulation, is estimated at $ 202 billion. The ongoing burns contribute to a minor shortage of the offer, but in view of the large overall offer, the immediate effects remain limited.
Historically speaking, token burns can lead to a positive mood because they signal scarcity and strengthen the trust of investors. However, the large token capacity of XRP means that even extensive burns cannot quickly change the fundamental data of the market.
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