The burning of XRP: Does it move the needle?
The tokenomics of XRP in the Ripple Ledger clearly defined two things: a total issuance of 10,000,000,000.00; and an automatic burn system with a Burn Rate of approximately 0.00001 per transaction.
This indicates two things at first glance: the token is deflationary, and conducting spam attacks will be costly.
And it is this latter point, the sense of that programming, not the former.
This means that news of large burns (even if true) does not influence the final value of an XRP.
Let’s put the following in figures:
1,000,000,000.00 represents 1% of the maximum issuance.
If that number were burned, the impact would still be low. And by December 2024, a burn of 15,000,000.00 was estimated, far below that number.
Moreover, considering that the escrow mechanism of XRP limits actions aimed at saturating the market. And the circulating supply of XRP is much lower than its maximum issuance (influencing this in the burn rate), the burning of XRP does not move the needle.
We need to be attentive to the possible (and future) issuance of an ETF on the NYC stock exchange. But that is still pending.
When that happens, XRP will be on par with BTC and ETH, as well as gold and the S&P 500. This will make it a tradable asset within centralized finance.
And it will drive up the value of the asset.
XRP is not just any crypto asset; it is one of the future international currencies.
What BTC is to gold, XRP will be to the dollar.
Do not look to XRP for the leap that will make you a millionaire, because you will not find it; look for the next strong currency in international finance.
