The XRP Ledger has now permanently destroyed over 13.9 million XRP tokens, sparking renewed discussions within the cryptocurrency community. This ongoing burn, driven by protocol-level transaction fees, has eliminated more than $30 million worth of tokens at the current price of $2.16 per XRP.
Each time a transaction is made on the network, a small amount of XRP is consumed and permanently removed from circulation. This deflationary process is not a temporary feature but a core part of the network’s design. Unlike systems that redistribute fees to validators or users, XRP’s model ensures those tokens are gone for good.
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According to Cobb (@Cobb_XRPL), a prominent voice in the XRP ecosystem, the network destroys an average of 3,000 to 4,000 XRP every day. In response, members of the XRP community have labeled this burn mechanism a “quiet march toward scarcity,” emphasizing its long-term significance.
Many observers view this steady reduction in supply as a strategic strength rather than a coincidence. The idea that XRP is “burning itself into scarcity” is gaining traction as daily burn rates persist, especially in an industry where many tokens face inflationary pressure.
Rising Burn Rate Raises Speculation of a Future Supply Crunch
As XRP continues to be used for real-world transactions, particularly in cross-border payments, the deflationary impact of these burns is beginning to stand out. The more the network is used, the more XRP is lost forever. Over time, this could exert upward pressure on price if demand outpaces the shrinking supply.
Some within the community are now questioning whether this slow and consistent reduction could trigger a major supply shock in the future. With thousands of tokens disappearing daily, XRP’s total supply is steadily contracting in a way few other digital assets can replicate.
The XRP Ledger also includes a minimum reserve requirement to prevent spam and preserve network integrity. Still, this safeguard does not interfere with the ongoing token burns that happen automatically with every transaction.
While claims about the asset being backed by physical reserves remain speculative, the network’s utility in transferring global liquidity continues to drive its adoption.
Conclusion
XRP’s deflationary mechanism is no longer just a technical detail—it is becoming a central topic in market conversations. As more than $30 million worth of XRP disappears from circulation, some believe the foundations of a future supply shock may already be forming.
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