Someone questioning if the XRP price is not based on marketcap but on money he can move, actually XRP has a built-in mechanism that burns a small amount of XRP with each transaction, gradually reducing the total supply. The current burn rate is approximately 0.00001 XRP per transaction.
Impact of Burn Rate on Supply
To assess the impact, let's consider hypothetical transaction volumes:
Average Transactions Per Day: 1.5 million (a reasonable estimate based on historical data)
XRP Burned Per Day: 1.5 million
×
× 0.00001 = 15 XRP
XRP Burned Per Year: 15 XRP/day
×
× 365 days = 5,475 XRP
Even if transaction volumes increase significantly, the burn rate is still relatively small compared to the total supply. For instance:
10 million transactions per day: 100 XRP burned daily, 36,500 XRP annually
50 million transactions per day: 500 XRP burned daily, 182,500 XRP annually
The Fact Unfortunately over decades, the burn rate would only reduce the supply marginally.
Disclaimer: not advicing to buy or sell $BTC $ETH Dominance and Popularities is above XRP will hard to see XRP going 100$ its need 9times values of All BTC in the world
