XRP Burn Rate Plunges Over 80% Amid Transaction Slowdown, Pressuring $2 Support
XRP burn rate has collapsed over 80% from August peaks above 4,500 to about 741 XRP per day as of Oct. 21, marking the lowest deflationary metric since Q3. On-chain data from CryptoQuant shows daily burns fell from 2,500–8,300 in Q1 to near-zero levels in Q3 amid Bitcoin’s surge past $110,000. Recently, XRP burn rate dipped further to 178 XRP on Oct. 18, despite an intraday price high of $2.37. The burn decline signals weakening transaction volume and reduced deflationary pressure. XRP price slid to $2.40, down 0.6% daily and 15.5% monthly. Technical charts show a lower-high pattern. Key support at $2.00 is at risk if on-chain activity stays low. Traders should monitor XRP burn rate, on-chain metrics and network adoption. Without fresh catalysts like regulatory clarity or institutional partnerships, XRP may struggle to reclaim the $3 resistance.
Bearish
The collapse in the XRP burn rate indicates weakened transaction volume and diminished deflationary pressure, reducing scarcity and supply-tightening effects. In the short term, this trend can depress XRP price as lower on-chain activity undermines bullish momentum. Technical signals, including a lower-high pattern and threatened $2 support, heighten downside risk. Over the long term, without renewed network adoption or regulatory/institutional catalysts, persistent low burns may limit upward price potential, suggesting a bearish outlook.