Like a recent Messari report As outlined, the XRP Ledger (XRPL) showed notable progress in the first quarter of 2024. The decentralized public blockchain, which facilitates the transfer of
XRP Ledger Burn Rate Slows Down Due to Low Costs
During the first quarter of 2024, XRP, the native token of the XRPL, secured its position as the sixth largest cryptocurrency by market capitalization, with a value of $34.1 billion (currently $29 million). Despite a slight price drop, XRPs are here to stay circulating market capitalization experienced growth of 1.3% quarter-on-quarter (QoQ).
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The XRPL uses a deflationary mechanism by systematically burning transaction fees. This process puts downward pressure on the total supply of XRP, which stands at 100 billion tokens.
Since the creation of the XRP Ledger, approximately 12 million XRP have been burned. However, the low combustion rate during the first quarter can be attributed to the network’s relatively low transaction fees (less than $0.002 per transaction).
Additionally, 1 billion XRP is released from escrow to Ripple every month, with unused tokens placed into new escrow contracts. This pattern will continue until the remaining approximately 45 billion XRP becomes liquid; at this point the deflationary pressure from the fees burned will be the main variable affecting supply.
While the price of.
Sign-up-based transactions drive daily XRPL payments
The report highlights that revenue in the Network activity showed significant growth, with active addresses and transactions increasing by 37% and 113% respectively quarter-over-quarter.
A significant portion of transaction activity on the XRPL came from inscriptions, a transaction type that became popular in early 2023. More than 30 million transactions were sent to a single account by approximately 45,000 accounts engaged in inscription-related activities.
According to Messari, inscriptions, facilitated by XRP Script, played a key role in driving the wave daily paymentswhich increased by 350% quarter on quarter to 2 million transactions.
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Finally, the report notes that the
However, new addresses fell 12.4% quarter-on-quarter to 183,000, mainly due to the large number of addresses created in the fourth quarter, which coincided with the start of enrollment activity.
At the time of writing, XRP is valued at $0.5279, down 2.5% in the past 24 hours and 3.5% in the past seven days, which is in line with the broader market trend.
Featured image from Shutterstock, chart from TradingView.com