XRP: Retail Trades Halt, But Whales Burn Transaction Fees in a Storm

▲ XRP

The transaction fee burn rate on the XRP Ledger has surged by over 84%. At the same time, market attention is focused on a structural change in on-chain activity, coupled with a decline in trading volume.

According to U.Today, a cryptocurrency specialized media outlet, on September 30 (local time), aggregated data from the XRP Ledger shows that the amount permanently burned as network transaction fees surged by 84.3% compared to the previous comparative period, totaling 771.7 XRP. The XRP Ledger employs an anti-spam design where transaction fees are not paid to validators but are immediately and permanently burned, thereby reducing the circulating supply.

This surge in the burn rate has attracted attention because it occurred amidst a slowdown in overall superficial activity indicators across the network. During the same period, the number of successful transactions decreased by 6.5% to 1.6 million, and total transactions fell by 5.6% to 2.2 million. The number of simple payment transactions also showed a 7% decrease, totaling approximately 759,200. Despite the decrease in transaction count, the significant increase in burned volume suggests that the fee expenditure per unit transaction has surged, rather than merely an increase in network users.

Opinions are divided among the community and market participants regarding this phenomenon. While some express optimism that deflationary scarcity due to supply reduction will support long-term prices, others argue that a daily burn of a few hundred XRP is not enough to directly move short-term prices, given the total circulating supply of 68 billion. Instead, the prevailing analysis suggests that it is a concentration of costs for specific activities, such as an increase in minimum fees due to temporary network overload or the execution of large-scale smart contracts.

On the charts, XRP is approaching a major resistance zone, and this on-chain change coincides with a technical turning point. Experts analyze that if XRP breaks above the downtrend resistance line in the $1.40 to $1.42 range, it could test a break past $1.45 and then $1.50. Conversely, if short-term upward momentum slows, the support of the long-term moving average around $1.34 to $1.35 is considered a key defense line that will determine the short-term trend.

[Article Key Summary]

-The amount of fees burned on the XRP Ledger surged by 84.3% compared to the previous period, reaching 771.7 XRP.

-With transaction counts decreasing by 5.6% to 6.5%, the jump in burned volume indicates an increase in cost per transaction.

-While the direct supply shock relative to circulating supply is limited, attention is drawn to whether the key resistance of $1.40 will be broken.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*