XRP Price Rises as On-Chain Burn Rate Falls, Hinting at Possible Shifts in Large Holder Activity

• Price momentum diverges from on-chain activity: XRP rose more than 5% in 24 hours even as burn metrics cooled, highlighting a shift in market drivers beyond immediate network throughput.

• Burn rate declines amid rising demand: The sharp drop in XRP burn may reflect lower congestion or more efficient transaction processing amid renewed interest.

• Ripple innovations and large-holder participation: Analysts point to ongoing developments and institutional interest as possible catalysts behind the rally, despite softer on-chain activity.

description: XRP price climbs as burn rates plunge; explore the drivers behind the rally, key data from XRPScan and CoinMarketCap, and what this means for investors today.

Publication date: Oct 18, 2025 • Updated: Oct 18, 2025

What is causing XRP’s price surge amid falling burn rates?

Direct, comprehensive answer: The latest rally appears driven by a combination of renewed liquidity, strategic positioning by large holders, and ongoing Ripple-related developments, rather than a proportional increase in on-chain activity. While price momentum has surged to intraday highs near $2.37, burn metrics show a contrasting trend, signaling a complex dynamic between market sentiment and network utilization.

What is XRP burn rate and what does it indicate?

The XRP burn rate measures how quickly transaction fees are destroyed as a proxy for network usage. A rapid burn typically accompanies higher transaction volume, while a sharp decline—such as a fall from 616 XRP to 178 XRP in 24 hours—can indicate lighter congestion or shifting transaction patterns. In this case, the price rally coincides with a notable drop in burn, suggesting investors may be accumulating or trading through channels that do not immediately tax the base layer.

Frequently Asked Questions

What caused XRP burn rate to drop in 24 hours?

The burn decline reflected a 71.26% reduction from 616 XRP on Oct. 17 to 178 XRP on Oct. 18, as reported by XRPScan. This drop occurred amid a broader price rally, implying that market forces outside straightforward on-chain activity—such as speculative trading or off-chain liquidity movements—may be at play.

Is XRP’s price rally sustainable without higher on-chain activity?

Natural-language analysis suggests that sustainability depends on continued demand from investors and institutions, as well as ongoing ecosystem developments from Ripple. While on-chain activity may lag price momentum in the short term, sustained interest and productive use cases could align on-chain metrics with price over time.

Key Takeaways

• Takeaway 1: The XRP price showed a significant intraday gain despite a pronounced drop in burn, indicating a shift in what’s driving the market.
• Takeaway 2: The burn rate decline could reflect lower congestion or more efficient processing amid rising demand, not necessarily declining network value.
• Takeaway 3: Ripple’s ongoing innovations and institutional interest may be shaping trader expectations, potentially supporting price momentum ahead of further on-chain activity.

Conclusion

In the current environment, XRP is exhibiting an unusual dynamic: a robust price rally paired with contracting on-chain burn. Analysts note that this combination underscores evolving market behavior and the potential influence of Ripple’s development initiatives and institutional participation. Investors should monitor both price action and on-chain data for signs of a rebalancing between demand and network activity. By following official data sources and updates from Ripple’s ecosystem, readers can contextualize short-term moves within longer-term fundamentals. COINOTAG will continue to monitor these indicators and provide timely updates.

Author: COINOTAG