XRP Burn Rate Almost at Zero as Price Loses $2

The negative trend seen across the broad crypto market has significantly affected XRP’s on-chain performance, and its network activities have slowed down significantly.

Over the last day, the XRP network activity has been moving at a flat rate, as the amount of XRP burned as fees has barely shown any noticeable increase during the period.

While the XRP burn rate has turned very low, data from on-chain analytics platform CryptoQuant shows that the total number of XRP burned as fees has dropped from 333 XRP on Jan. 17 to less than 100 XRP in just 24 hours.

This has seen the burn rate plunge by over 50% as market uncertainty continues to linger amid the deep price corrections seen in all leading cryptocurrencies.

XRP’s loses $2 mark

Apart from the XRP network activity, other metrics have also signaled negative momentum for the asset’s price, suggesting that the asset is yet to make any attempt to recover.

While it is important to note that the XRP burn metric does not often determine the asset’s potential price action, the massive slowdown in the metric shows an overall downtrend in XRP’s on-chain movements.

As such, it is safe to say that the demand for XRP for payment purposes has been relatively low over the last day.

Usually, notable drawdowns in this fee-driven burn activity have often come at times when the broader crypto market is slipping into another pullback phase, just as seen in this case.

While XRP has now returned to a downside trajectory, it has slumped below the crucial $2 level for the first time this year as the market sees one of the deepest corrections of the year.

Following the negative price move, XRP has declined by 3.55% over the last day, trading at around $1.97 as of writing time.

With the poor on-chain movement, coupled with the weak performance pulled by XRP ETFs during their last daily trading session, it remains uncertain if XRP will resume its bull run in the near term.

Nonetheless, investors have remained optimistic about a potential price breakout for XRP despite the slow network activity.