Burning XRP
Sure, here's the relationship between **Adoption of $XRP** and **Increased Burning and Scarcity** in 5 lines:
1. **Automatic Burning Mechanism**:
Every transaction on the XRP network burns a small amount of the currency (≈ 0.00001 XRP) as a fee, and this amount is permanently destroyed.
2. **More Transactions = Greater Burning**:
As institutions (like banks and payment companies) adopt the Ripple network, the number of daily transactions increases, enhancing the cumulative burning rate.
3. **Continuous Supply Reduction**:
The network has burned **12 million XRP** so far, and every million new transactions destroy ≈ 10 XRP (this number has increased 5 times since 2023).
4. **Scarcity's Impact on Price**:
The decrease in circulating supply (currently 54.8 billion out of 100 billion) combined with increased institutional demand generates upward pressure on value.
5. **Supporting Ripple's Strategy**:
The company holds 45 billion XRP in an automated wallet and burns the excess monthly interest (80 million XRP burned in 2024), accelerating scarcity.
> **Conclusion**: Every **1% increase in adoption** translates to **~3.5 million additional transactions/month** → **~35 XRP burned daily** → enhancing the currency's scarcity in the long term.