XRP Burn Hits 14M Milestone Amid Surging Network Activity

XRP, the native token of the Ripple network, recently marked a significant development that reflects both its network engagement and deflationary mechanics. This milestone, involving over 14 million XRP permanently removed from circulation, showcases the growing adoption and utilization of the XRP Ledger (XRPL).

The XRP Ledger has a unique approach to crypto supply management. Unlike Bitcoin’s halving system or hard supply caps seen in other digital currencies, XRP employs a built-in transaction fee burn mechanism. With each transaction, a tiny amount of XRP is intentionally destroyed, reducing the total supply and discouraging spam attacks on the network. This approach not only supports the platform’s efficiency but also gradually enhances scarcity over time.

As of the latest figures reported by XRPScan, the total number of XRP coins burned stands at 14,003,265. This is the highest recorded deflation figure for XRP to date and underscores a persistent uptick in on-chain activity. The milestone affirms XRPL’s consistent growth in both volume and transaction frequency, signaling a maturing and increasingly adopted network.

Supporting this trend, analytics from blockchain intelligence firm Santiment reveal a surge in daily XRPL wallet interactions. On average, more than 295,000 distinct addresses have been interacting with the ledger daily—nearly a sevenfold increase compared to the previous baseline of 35,000 to 40,000 daily users over the past quarter. This indicates significant expansion in user participation.

Perhaps more importantly, large stakeholders, commonly referred to as whales and sharks in crypto terminology, are increasing their involvement. There are currently over 2,700 XRP wallets each holding at least 1 million tokens. This marks the first time in XRP’s nearly 12-year existence that such a level of high-value wallet concentration has been recorded, indicating strong investor confidence and expectations for future value appreciation.

The rising burn metrics and address activity present XRP as an increasingly active environment—an important metric for network health and long-term viability. However, this fundamental progress doesn’t always translate immediately into price appreciation or investor sentiment.

Market Reactions and Price Movement

XRP is currently trading above the $2 threshold, pricing in at approximately $2.13. This represents more than a threefold increase from its trading value prior to the breakout in November 2024, allowing early investors to secure returns exceeding 300%.

Despite the bullish fundamentals, data shared by Glassnode reveal some hesitation in the market. Many early XRP holders seem to be taking profits, with an average of $68.8 million in realized gains occurring daily. This outflow hints at a distribution phase, where prior gains are being converted back into fiat or other digital assets, potentially weighing on upward momentum.

Should this profit-taking trend persist, analysts warn of a possible pullback to the $2 support level. A breakdown from that support could send XRP downward to its next critical level near $1.61.

On the flip side, if buying sentiment strengthens and XRP can reclaim levels above its 50-day simple moving average (currently around $2.27), consolidation within the $2–$2.65 range may occur. Breaking through the upper resistance at $2.65 could trigger a new wave of bullish momentum and a sustained price climb.

In summary, XRP is at a pivotal moment. The strong deflationary activity from transaction-based burns reflects a healthy, advancing ecosystem. Network engagement from both retail wallets and large-scale investors continues to rise. But while these fundamentals are promising, the token’s price action is currently caught between profit realization and potential upside momentum.

Related: Expert Advice: Sell XRP If You’re Confused

The next several trading sessions could help determine whether XRP consolidates its recent gains or faces short-term retreat before any forthcoming rallies.