The total number XRP tokens burnt recently reached an important milestone. This raises questions about its impact these burns can have on the value of the XRP tokens in circulation. Interestingly enough, Ripple’s CTO is David Schwartz made some comments recently in this regard, when he wondered whether or not XRP burns could affect the token’s value.
12 million XRP now gone from circulation
Facts the XRP Scan shows that this is just over 12 million XRP tokens have now been burned and disappeared from circulation. This figure represents only 0.012% of The total available supply of XRP, which now amounts to more than 99.9 billion. Given the magnitude of the number of tokens still available, it is difficult to imagine that the tokens burned so far could have that much of an impact on the token’s price.
It’s also worth noting that the 12 million XRP burned so far is a cumulative total of all the tokens that have disappeared from circulation since then. they were pre-processed. As such, these tokens were burned at different times and not necessarily on a large scale. With this in mind, this could explain why the XRP community is asking for this burns from Ripple’s XRP holdings.
Ripple currently holds over 40 billion XRP in custody. Burning a significant portion of these tokens could have more effect on the token’s price than the 12 million that have been burned so far. However, Ripple’s CTO David Schwartz doesn’t believe that this would bring “some real benefits”. He also alluded that Stellar’s burning of 55 billion XLM tokens in 2019 did not have much impact on the token’s price.
Token price falls below $0.6 | Source: XRPUSD On Tradingview.com
Ripple’s XRP interests may not be the problem
Talks of burning Ripple or at least divesting a significant portion of their XRP holdings continue to surface in the US XRP Community. This is due to the accusations made by the crypto company responsible for the stagnant price of XRP based on the belief that they will continue to dump their tokens on the market.
However, these accusations seem unfounded, considering that it has been reported that Ripple’s XRP sales have no impact on the token’s price on crypto exchanges. The crypto company somehow provides stability to the ecosystem, as is known repurchases in different periods.
Ripple burning their held tokens is also not an easy task, as Ripple’s CTO seemed to suggest in his latest comments. It has been said in the past that Ripple will likely need approval from validators to perform these burns.
A former Ripple executive did mentioned before that Ripple could simply disable the master key on the destination account receiving these blocked funds. However, there are no guarantees that this could achieve the same goal as disappearing the tokens from circulation.
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