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$XRP has recently seen a sharp surge in its network activity, recording significant increases in its daily burn rate in the past week.
While its price has remained weak, showing little-to-no major increases recently, $XRP’s network usage remains strong, as it has recorded a sharp spike in its burn rate over the past day.
The surge in the $XRP network usage is most evident in its burn metric, which has spiked rapidly regardless of weak price movement.
$XRP burn rate explodes
As of Friday, April 3, data from crypto analytics platform Cryptoquant shows that the amount of $XRP burned as fees has surged to 1,031 $XRP.
While it has only recorded 474 $XRP in the previous day, this marks a massive increase of 171.6% in the $XRP burn rate within just 24 hours.
Considering the extended crypto market volatility, it is unlikely that the burn rate surge is attributable to the market trend; however, it could also signal a shift in investor sentiment.
The surge in the amount of $XRP burned as fees seen over the last day marks the highest burn rate increase seen so far since the new month began.
Although $XRP is still yet to show any major price recovery, the surge in the burn metric, which is often fueled by surging investor demand, shows that $XRP is increasingly becoming scarce.
With such activity, $XRP Ledger is seeing an increase in the amount of the tokens permanently removed from circulation, potentially boosting its value.
$XRP remains low
Despite the surge in the $XRP burn rate, $XRP has only reflected a mild increase in its price over the last day.
The asset has reversed greatly from its recent high around $1.70 and it is currently hovering around the $1.31 level as selling pressure remains high.
Nonetheless, $XRP might be at the verge of a major price rebound as its strong network usage could fuel an increase in its price.