XRP Daily Payment Volume Exceeds 2 Million Transactions, Up 350%
According to a Messari analysis, the XRP Ledger (XRPL) made significant development in Q1 2024. Activity on the decentralized public blockchain, which transfers XRP, fiat currencies, and other digital assets, is high.
XRP Ledger Burn Rate Slows Due to Low Fees
In Q1 2024, XRP, the native token of the XRPL, became the sixth biggest cryptocurrency by market capitalization at $34.1 billion (now $29M). XRP's circulation market value grew 1.3% QoQ despite a price drop.
By burning transaction fees, the XRPL deflates. XRP's 100 billion token supply falls due to this procedure.
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About 12 million XRP have been burnt since the XRP Ledger began. Q1's low burn rate was due to the network's low transaction fees (less than $0.002).
Each month, Ripple receives 1 billion XRP from escrow, with any unused tokens deposited in new contracts. Until the remaining 45 billion XRP becomes liquid, deflationary pressure from burnt fees will mostly effect supply.
XRP grew 14.8% year over year, but it fell 0.1% QoQ, behind the crypto market's 63.0% growth.
The inscription-driven transactions propel XRPL daily payments.
The paper notes that the XRPL's income is determined by total network fees, which are burnt to redistribute wealth from transaction fee spenders to XRP holders. Network activity increased 37% QoQ for active addresses and 113% for transactions.
Many XRPL transactions were made, popularized in early 2023. About 45,000 inscription-related accounts submitted over 30 million transactions to one account.
Messari said inscriptions, enabled by XRP Script, drove the 350% QoQ increase in daily payments to 2 million transactions.
