XRP Burn Surges with Rising XAH Claims, Boosting XRPL
According to XRP Ledger (XRPL) explorer, XRPScan, the total number of XRP burns has skyrocketed in recent times following the ongoing Xahau (XAH) token claims period.
XRP Burn: A Notable Concern?
Under general circumstances, burning a particular digital currency is a positive move that can help push the valuation of the asset upward in the future. However, in the XRP burn scenario, the underlying motive behind the deflationary move is tied to Xahau, a sidechain of the XRPL whose native token XAH has been named as a major XRP rival.
According to XRPScan, the release of the Xaman 2.6 upgrade version fueled the massive XRP burn as users gave up their XRP and imported XAH on the Xahau Network. While this is more like an airdrop per its underlying design, the apparent impact on XRP might be outstanding if left uncontrolled.
On the flip side, XRP has an enormous supply of 100,000,000,000 of which more than 99 billion XRP is already in circulation. In comparison, the total supply of XAH per data from CoinMarketCap is a little above 600,000,000, and per the XRP to XAH switch campaign, it is worth noting that not all the XAH supplies are designated for the switch.
This implies that the XRP burn trend will only remove a relatively smaller proportion of XRP with the potential to contribute to increased valuation in the long run. With the launch of Xahau on the mainnet, the Layer-2 sidechain is poised to ultimately enhance the attractiveness of the XRP Ledger and by extension, spur XRP’s growth.
XRP Attractiveness is Growing
In recent times, the attractiveness of XRP has grown by virtue of the highly acclaimed innovative solutions making their way onto the XRPL. Besides Xahau, Evernode is another protocol that has generated enormous intrigue in the XRP ecosystem not for its EVERS airdrop, but for its advanced smart contracts ecosystem.
With the expansion of the XRP Ledger and the growing utility associated with the digital currency as a payment token, XRP has the potential to reclaim its lost price levels, especially after Solana (SOL) surpassed it in market capitalization earlier this week.
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