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XRP’s recent decline in burn rate signals a notable reduction in on-chain activity, reflecting a broader slowdown in transaction volume on the XRP Ledger.
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Data from XRPScan reveals a 41% drop in XRP burned as transaction fees within 24 hours, coinciding with the lowest payment transaction count since October.
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COINOTAG highlights that despite this downturn, XRP’s ecosystem remains robust with significant milestones achieved earlier in the year and upcoming events poised to influence future activity.
XRP’s burn rate drops 41%, marking a slowdown in on-chain transactions amid a historically strong Q1 and anticipation of key XRP Ledger events.
XRP Burn Rate Decline Reflects Reduced On-Chain Transaction Activity
Recent data from XRPScan indicates a sharp decrease in the amount of XRP burned as transaction fees, falling from 3,323 XRP on June 2 to just 1,930 XRP on June 3, representing a 41% decline in a single day. This metric is a critical indicator of network activity since transaction fees are burned to prevent spam and maintain ledger integrity. The drop aligns with a significant reduction in payment transactions, which have fallen to 320,747—the lowest since October 2024. This figure contrasts starkly with the average of over one million daily payment transactions recorded during the first half of the year, underscoring a marked slowdown in user engagement and value transfers on the XRP Ledger.
Impact of Reduced Account Creation on XRP Burn Metrics
The decline in XRP burned also correlates with a slowdown in new account creation. Each new account on the XRP Ledger requires a deposit of one XRP, which is locked as a reserve but can be reclaimed upon account deletion. This reserve mechanism contributes to the overall XRP burned statistics. While the all-time high for XRP burned stands at 13,945,213 XRP, recent trends suggest a cooling interest in onboarding new users or entities onto the network. This reduction in fresh accounts further compounds the decrease in transactional activity, signaling a temporary contraction phase for the XRP ecosystem.
Strong First Quarter Performance Sets Context for Current Slowdown
Despite the recent downturn, XRP experienced a robust first quarter in 2025. According to Messari data, payment transactions surged by 36% quarter-over-quarter, while active addresses increased by an impressive 142%. The average total daily transactions rose by 13%, reaching 2.04 million, highlighting substantial network growth earlier in the year. Additionally, the XRP Ledger has seen nearly 8 million NFTs minted using the XLS-20 standard, reflecting growing adoption of its tokenization capabilities. These achievements provide a strong foundation that contrasts with the current dip, suggesting the slowdown may be a temporary adjustment rather than a long-term decline.
Regulatory Milestones and Upcoming Events Bolster XRP Outlook
In a significant regulatory development, the Dubai Financial Services Authority (DFSA) granted approval for the Ripple USD (RLUSD) stablecoin, enabling its use within the Dubai International Financial Centre (DIFC). This approval marks a critical step toward mainstream adoption and regulatory acceptance of XRP-related digital assets in key financial hubs. Furthermore, the XRP Ledger Apex 2025 event, scheduled from June 10 to 12 in Singapore, is highly anticipated by industry participants and investors alike. The event is expected to feature important announcements and innovations that could reinvigorate network activity and expand XRP’s utility in the coming months.
Conclusion
The recent decline in XRP’s burn rate and transaction volume highlights a temporary slowdown in on-chain activity following a period of significant growth and adoption. While payment transactions and account creations have decreased, the strong performance in Q1 2025 and regulatory advancements like the DFSA’s approval of RLUSD underscore XRP’s resilience and potential. Market participants should closely monitor developments from the upcoming XRP Ledger Apex 2025 event, which may provide fresh catalysts for renewed network engagement and growth.
