Ripple (XRP) has recently achieved a milestone of burning a total of 14 million XRP, once again demonstrating increased transaction activity and network usage in its ecosystem. This milestone serves as an indicator of active asset circulation on the XRP Ledger (XRPL) network, with growing expectations that it could potentially drive price appreciation pressure through supply reduction in the long term.
While the XRP burning mechanism does not have a halving period like Bitcoin (BTC), it automatically burns a certain amount of XRP during transaction processing. Designed to prevent spam, it naturally reduces circulating supply. The 14 million burns, based on XRPScan, accurately reflect the ongoing increase in XRP's real-world usage and demand.
According to recent analysis by Santiment, the average daily XRP users have surged from 35,000-40,000 to over 295,000. Additionally, the number of 'whale' and 'shark' wallet addresses holding at least 1 million XRP has exceeded 2,700, indicating continued institutional or high-value investor interest.
Meanwhile, the XRP price is currently at $2.13, which is over 300% higher compared to pre-November 2024 levels. However, the market remains cautious about simple optimism. According to on-chain data provider glassnode, early XRP holders have been realizing an average daily profit of $68.8 million, increasing selling pressure.
Investors are focusing on whether the $2 support line will be maintained. If this line collapses, the price could potentially drop to $1.61. Conversely, if buying pressure returns and breaks through the 50-day simple moving average of $2.27, and subsequently surpasses $2.65, a new bullish trend could emerge.
The monumental figure of 14 million XRP burned demonstrates the network's maturity and suggests that XRP is moving beyond a simple payment method to become a potential long-term investment. However, price volatility remains high, making a cautious approach crucial for investors.
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