As a hadith of my path a report As shown, the XRP Ledger (XRPL) showed significant progress during the first quarter of 2024. The decentralized public blockchain, which facilitates the transfer of XRP, fiat currencies, and other digital assets, has shown significant activity.
XRP ledger burn rate slows amid low fees
During the first quarter of 2024, XRP, the native token of XRPL, secured its place as the sixth-largest cryptocurrency by market cap, reaching $34.1 billion (currently $29 million). Despite the slight decline in XRP prices Traded market value It saw a growth of 1.3% quarter-on-quarter.
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XRPL uses a deflationary mechanism by systematically burning transaction fees. This process is putting 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, low Burning rate This during Q1 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 each month, with any unused tokens placed in new escrow contracts. This pattern will continue until approximately 45 billion XRP becomes liquid; At this point, the deflationary pressure caused by burned tariffs will be the primary variable affecting supply.
While the price of XRP fell marginally by 0.1% QoQ, lagging the overall cryptocurrency market increase of 63.0%, it rose by 14.8% YoY (YoY)..
Record-backed transactions drive daily XRPL payments
The report highlights that revenue in XRPL is measured as the total fees collected by the network, which are subsequently burned, contributing to the redistribution of wealth from transaction fee spenders to XRP holders. Network activity showed significant growth, with addresses and active transactions increasing by 37% and 113% quarter-on-quarter, respectively.
Much of the transaction activity on XRPL stems from registrations, a transaction type that became widespread in early 2023. More than 30 million transactions were sent to a single account by nearly 45,000 accounts engaged in registration-related activities.
According to Masari, spoofs, facilitated by XRP Script, have played a major role in driving the boom in cryptocurrencies. Daily paymentswhich increased by 350% on a quarterly basis to reach 2 million transactions.
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Finally, the report notes that the XRP Ledger blockchain saw a net increase of 150,000 accounts, causing the total number of accounts to rise 3.1% to 5.15 million in the first quarter.
However, new Addresses It decreased by 12.4% QoQ to 183,000, mainly due to the large number of addresses created in the fourth quarter, coinciding with the start of registration activity.
As of press time, XRP is worth $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