Lead Ripple developer Neil Hartner has addressed speculations about the recent decrease in XRP’s market supply. This speculation arose after an anonymous Twitter account pointed out that over the past month, over 247,000 XRP tokens have been permanently burned.
To clarify the situation, Hartner took to Twitter to explain the reasoning behind burning XRP tokens and its implications on the token. He also provided XRP enthusiasts with critical insights into how the XRP Ledger works.
Hartner revealed that Ripple had recently removed some accounts from the XRP Ledger, and the removal of each account resulted in the burning of 2 XRP tokens. This removal of accounts was specifically targeted at dormant accounts that previously held 20 XRP tokens, which was the previous account reserve amount.
This explanation provides useful insights for XRP enthusiasts, allowing them to understand how different executive decisions can affect the coin’s market value. It also sheds light on the inner workings of the XRP Ledger.
Additionally, Hartner mentioned that a major decrease in XRP’s market supply occurred due to the actions of the crypto exchange Poloniex. The exchange recently removed over 85,000 non-operational accounts, resulting in the burning of over 170,000 XRP tokens.
Despite the decrease in XRP’s supply, it has not had any significant effect on the coin’s price yet. Currently trading at $0.47, XRP has experienced a 7.6% decrease in value over the month. However, its value has remained relatively stable over the past week. Since June 24th, the coin has been trading below $0.50.
Traditionally, a decrease in a cryptocurrency’s supply would be expected to drive up its price. However, this has not been the case for XRP. It is important for investors to consider the fundamentals of trading when analyzing market behavior.
In conclusion, Ripple developer Neil Hartner has clarified the recent decrease in XRP’s market supply. The burning of XRP tokens was a result of account removals from the XRP Ledger, both by Ripple and Poloniex. Despite this decrease in supply, XRP’s price has not experienced a significant increase. These developments provide valuable insights into the workings of the XRP Ledger and the factors influencing the coin’s market value.
