Scarcity and Lack of Funds$XRP
1. **Automatic Burn Mechanism**:
Each transaction on the XRP network burns a small amount of the coin (≈ 0.00001 XRP) as fees, which is then permanently destroyed.
2. **More Transactions = More Burns**:
As institutions (such as banks and payment companies) adopt the Ripple network, the number of daily transactions increases, boosting the cumulative burn rate.
3. **Constant Supply Reduction**:
The network has burned **12 million XRP** so far, and every million new transactions destroys ≈ 10 XRP (this number has quintupled since 2023).
4. **Scarcity's Impact on Price**:
The declining circulating supply (currently 54.8 billion out of 100 billion) combined with increased institutional demand creates upward pressure on the value.
5. **Ripple's Supportive Strategy**:
The company holds 45 billion XRP in an automated wallet and burns excess interest monthly (80 million XRP burned in 2024), accelerating scarcity.
> **Result**: Every 1% increase in adoption translates to ~3.5 million additional transactions/month → ~35 XRP burned daily → enhancing the coin's scarcity in the long term. $XRP
#Ripple#xrp #Xrp🔥🔥#BTC#Binance
