XRP Burns Jump 100% as Network Activity Booms

XRP has recently seen a notable shift in its blockchain metrics, with a significant 100% increase in burned tokens reflecting a spike in network utilization. This surge in XRP burns highlights the underlying strength of Ripple’s infrastructure and increasing user demand, which could have broader implications for its future performance.

On July 15, over 4,500 XRP tokens were permanently removed from circulation as transaction fees, signaling heightened activity on the XRP Ledger. This represents a doubling of coin destruction compared to the previous week. Though often overlooked, this deflationary mechanism plays a crucial role in XRP’s tokenomics, subtly influencing supply and demand dynamics.

A rise in token burns is closely tied to payments being processed on the network. Increased fee destruction almost always correlates with higher user engagement and greater liquidity on-chain. This sustained network demand strengthens XRP’s position as a reliable asset powered by one of the most efficient blockchain infrastructures available today.

Currently, XRP is holding strong above its crucial resistance areas. The cryptocurrency recently peaked at $3.02 and has managed to establish a new level of support around $2.95, having cleanly broken past the previous $2.90 resistance line. This price behavior underscores the strength of its bullish trend, supported further by technical indicators and user activity.

According to data charts, XRP is well-positioned above all major moving averages. The 200-day EMA sits near $2.16, the 50-day EMA hovers around $2.30, and the 100-day EMA is approximately $2.28. These averages reinforce the bullish sentiment as the token sails above them all with ease. Additionally, the trading volume has remained consistently high throughout July, lending further weight to this sustainable growth.

What’s even more revealing is the current performance of the XRP Ledger. Over the last 30 days, transaction volume has surged dramatically. On July 16 alone, daily transfer volumes hit an impressive 471 million XRP, confirming significant movement on-chain likely driven by institutional and high-frequency participants.

This boost in transactional throughput aligns with the spike in XRP burns, creating a potent mix of scarcity and functionality. A shrinking supply due to increased token destruction may appeal to long-term holders, reinforcing XRP’s deflationary narrative. The rising use cases and elevated payment volumes might be early signs of broader adoption or imminent strategic moves from market participants.

However, it’s important to temper expectations. Current Relative Strength Index (RSI) levels are hovering above 80, indicating that XRP may be entering overbought territory. If heavy profit-taking occurs, a pullback to the $2.70–$2.80 range is plausible. Even so, such a correction wouldn’t necessarily diminish the overall bullish market structure. Instead, it could provide healthier footing for continued growth.

The sharp rise in payment activity—not just speculative investment—reveals a vibrant and engaged user base interacting directly with the XRP Ledger. This consistent usage gives XRP a fundamental layer of support while also preparing it for future price movements. A 100% increase in XRP-related burns ultimately reflects growing confidence in Ripple’s infrastructure and the real-world utility of XRP within the ecosystem.

Related: XRP Price: $12M Max Pain for Bears

As crypto markets evolve and investors seek efficiency and cost-effectiveness in transactions, XRP continues to stand out. The recent surge in burns coupled with elevated volumes indicates a well-utilized, deflationary asset with strong market interest, and potentially even more momentum ahead.