Recent trends in the cryptocurrency market have generated a mixture of optimism and skepticism among investors regarding XRP’s potential breakout to the critical $3.60 level. Despite facing repeated challenges in achieving this price point, new data reveals a significant uptick in XRP’s burn activity, suggesting positive momentum may still be building.
According to data from CryptoQuant, XRP has experienced a remarkable 91% increase in its burn activity over the past week. Following a dip to a low of 390 XRP tokens burned as fees on September 20, this vital indicator is now trending toward the four-figure range, a shift that has rekindled hopes among investors.
On September 26, burn activity surged to 749 XRP, while historical data indicates that the token previously recorded a burn volume peak of approximately 2,800 XRP within the last month. Although the recent increase may not be as substantial when compared to this past high, it does indicate a resurgence in on-chain activity, potentially signaling a forthcoming rebound for the asset.
Furthermore, this uptick in burn activity coincides with a notable rise in XRP’s price. Over the last day, the cryptocurrency regained its footing, reaching a three-day high of $2.81 after dipping to an intraday low of $2.70. The surge in the burn rate reflects a growing demand for XRP, evidenced by the volume of transaction fees that are permanently removed from circulation, which suggests heightened activity within the XRP network.
The rising burn rates and price movements are thought to stem from increased usage of XRP in various domains, including payments, decentralized finance (DeFi) activities, and the settlement of tokenized assets. This uptick in network engagement is particularly significant given the general weakness observed across the broader cryptocurrency market.
Moreover, the recent launch of the U.S. XRP ETF has spurred investor confidence, indicating that the ongoing price decline may not persist indefinitely. Enthusiasts are increasingly optimistic that XRP could soon break through the long-anticipated $3.60 threshold, buoyed by the heightened network activity and overall market interest.
As the situation develops, the cryptocurrency community remains watchful, hoping that these positive indicators will translate into a sustainable rally for XRP in the near future.
