The recent crypto market trends have seen XRP repeatedly reject its potential breakout to the crucial $3.60 level, gradually stirring doubts among investors. However, the crypto asset has seen a sharp surge in its burn activity, according to data from CryptoQuant, suggesting that something positive is still underway.
Notably, the data shows a decent rise in the quantity of XRP tokens burned as fees over the last week. After falling as low as 390 as of Sept. 20, this key metric is finally flashing hopes and is headed toward the four-figure range.
While XRP saw a sharp resurgence in its price amid shifting investor sentiment over the last day, the positive trend was accompanied by a major surge in its burn activity. XRP burns saw a sharp rise to 749 XRP on Sept. 26, marking a decent increase of 91% over the last seven days.
With historical records showing that XRP had recorded a high burn volume of about 2,800 XRP in the last month, the recent surge witnessed in the metric is not impressive enough. However, it signals resurgence in the token’s on-chain activity, fueling hopes for a massive rebound soon.
Nonetheless, it is important to note that the surge in XRP’s burn activity aligns with a sharp rise in its price over the last day, where its price reclaimed its three-day high of $2.81 after recording an intraday low of $2.70.
Apparently, the growth in its burn rate suggests growing demand for XRP as it showcases the volume of transaction fees permanently removed from circulation amid heightened on-chain activity.
As such, the positive movements in both metrics is attributable to a growing usage in XRP for payments, DeFi activities and tokenized asset settlements, all thanks to the recent developments witnessed in the XRP ecosystem.
Amid the general weakness seen across all cryptocurrencies, the surge in XRP network usage suggests the possibility of a potential recovery.
With the recent launch of the U.S. XRP ETF driving momentum for XRP, investors have shown confidence that the recurring price decline might not linger for long before XRP finally breaks its long-targeted $3.60 level.
