XRP Daily Burn Plummets Nearly 60% — Rally Momentum Cooling
XRP’s daily burn metric — the amount of XRP destroyed as transaction fees — fell sharply from 462 XRP on Dec. 5 to 186 XRP on Dec. 6, a 59.7% decline, according to XRPSCAN. The drop signals a marked reduction in on-chain activity and payment-related demand amid a broader market pullback. XRP price fell about 2% over 24 hours to roughly $2.03 at the time of reporting. Analysts note that while daily burn is not a definitive price predictor, historically steep reductions in fee-driven burn often coincide with market corrections. Despite cooling on-chain metrics, investor optimism persists due to inflows from spot XRP ETFs and hopes for a price reclaim of $3 later in the year. Key keywords: XRP burn, on-chain activity, XRP ETF, price correction, transaction fees.
Bearish
The near-60% drop in XRP’s daily burn indicates a sharp reduction in network transactions and payment demand, a leading on-chain signal of cooling momentum. Historically, steep declines in fee-driven burn have aligned with broader market pullbacks and short-term price corrections. The immediate price reaction — roughly 2% decline in 24 hours — supports a bearish short-term outlook as traders often interpret falling burn and lower transaction volume as reduced utility and demand. However, mitigating factors include continued inflows from spot XRP ETFs and investor optimism about reclaiming $3, which could provide support and limit downside over the medium-to-long term. Traders should watch on-chain metrics (burn, volume, active addresses), ETF flows, and Bitcoin-led market direction; a sustained drop in burn plus negative macro cues would likely reinforce bearish pressure, while renewed ETF inflows or resumed on-chain activity could reverse the trend.