- XRP Ledger saw the intentional burn of 10,000 DROP tokens, worth $50,700, stirring community curiosity and speculation.
- DROP’s current price is $5.07, down 17.44% in 24 hours, with its supply reduced to 989,000 tokens.
- Increased use of XRPL-based memecoins may boost XRP burns, potentially driving XRP’s price higher.
The XRP Ledger (XRPL) community is buzzing after a substantial burn of DROP tokens on the network. The transaction, indexed by XRPScan, an XRPL explorer, has sparked theories on the intent behind this incineration of assets. According to XRPScan’s recent X post, 10,000 DROP tokens were burned in a transaction dated October 18 at 06:56 UTC, involving a fee of 0.000012 XRP. Although this event occurred weeks ago, XRPScan’s post has only recently brought it to light, stirring community curiosity.
Following the post, XRPScan prompted the community to hold a “moment of silence” for the burn, a statement that added both humor and intrigue. The transaction’s visibility has invited discussion from XRP enthusiasts who are split on whether this burn was a strategic decision or an accidental mishap.
Thomas Silkjaer, the Head of Analytics and Compliance at the Inclusive Financial Technology Foundation (InFTF), leaned towards a deliberate intent. Silkjaer speculated that DROP’s issuers may have orchestrated the transaction intentionally, a sentiment XRPScan shared. In a separate update, XRPScan pointed out that the account responsible for the transaction is mentioned on First Ledger’s “About” page. This detail strengthens the argument for an intentional burn, positioning it as a possible strategy to generate scarcity or create buzz around the token.
DROP, a memecoin on the XRPL, is currently valued at $5.07, marking a 17.44% decrease over the past 24 hours. The recent burn of 10,000 tokens translates to $50,700, bringing DROP’s total supply down from 1 million to 989,000. The token, hosted on First Ledger, saw a peak market cap of $10 million earlier this month but has since declined to $5.01 million.
Some XRPL-based memecoins have made waves on the platform, and DROP’s journey seems to follow a similar trajectory. Market movements like these suggest that the demand and excitement around such tokens could influence XRP’s activity and, ultimately, its price.
Could XRPL-based Memecoins Lift XRP’s Price?
First Ledger, the platform hosting DROP, recently highlighted the potential influence of XRPL-based memecoins on XRP’s value. Their post suggested that the increased use of XRP-based tokens, including memecoins, could result in more XRP burns due to transaction fees. This, they argue, would lower XRP’s overall supply, potentially driving its price higher.
The mechanics behind the burn are simple yet impactful. Every transaction on XRPL incurs a fee paid in XRP, which is permanently burned. As interest in XRPL-based tokens grows, transaction volume—and thus XRP burned—could see a significant uptick.
With the total XRP burned on XRPL reaching nearly 13 million, the community continues to watch with anticipation. Will memecoins on XRPL, like DROP, serve as catalysts for XRP’s price growth? Or are they simply fads, driven by fleeting trends? Only time will tell if XRPL’s growing ecosystem of tokens will leave a lasting impact on XRP’s valuation.