XRP has seen its on-chain activity drop significantly, moving in contrast with its trading price, which has seen a major resurgence over the last day.
According to data provided by on-chain analytics platform XRPScan, the amount of XRP burned as transaction fees fell from 616 XRP on Oct. 17 to just 178 XRP on Oct. 18, marking a massive decline of 71.26% over the last 24 hours.
This sharp decline in XRP’s burn activity has raised eyebrows across the crypto community as it coincides with a massive resurgence in the price of XRP.
After several days of brutal consolidation, XRP is finally on the green side with a massive daily surge over 5.26% in the last 24 hours. This sharp resurgence witnessed today marks the strongest single-day recovery the leading altcoin has experienced in recent weeks.
According to data from CoinMarketCap, XRP has hit an intraday high of $2.37, with its price hovering the level as of writing time.
While XRP’s price movement today has restored hope to the market, it’s burn metric comes as a surprise as burn rates are expected to reflect the intensity of network usage and transaction volume.
On the contrary, the plummeting burn rate has come at a time when the entire crypto market is experiencing a rebound, with several major altcoins posting modest gains. Hence, positive momentum is expected to drive growth in transaction volume and on-chain activity for XRP.
Apparently, XRP’s rally has come with a twist, projecting an unusual combination of rising price momentum and falling on-chain burn activity, catching the attention of market participants.
Considering the rare XRP rally dynamics, it appears that the decline in burn rate could be a sign of lower transaction congestion or improved network efficiency in the face of surging demand.
Nonetheless, there are speculations that the contrasting metric is signaling a strategic shift in how large holders and institutional participants are interacting with the network due to Ripple’s relentless innovations and development.
