XRP was developed based on the principle of finite supply. A total of 100 billion coins have been created by Ripple's developers, and no more XRP will be created. Currently, about 49 billion coins are in circulation, and this amount of XRP is gradually decreasing, as tokens are used for each transaction made. This means that Ripple employs a token burning mechanism. The reduction in the number of coins in circulation may cause a shortage and lead to an increase in quotes.

The Federal Reserve periodically raises interest rates to combat inflation. With higher interest rates, volatility in financial markets, including the cryptocurrency sector, increases. During times of interest rate review, investors often observe sharp rises or falls in cryptocurrency quotes, including XRP.