u.today
Amid the declining crypto market trend, the XRP network activity has also taken a sharp turn from the decently high levels it has seen in recent days to a very low level.
As of Saturday, Dec. 6, data from XRPSCAN shows that the total number of XRP burned as fees has dropped from 462 XRP on Dec. 5 to just 186 XRP today.
Notably, this marks a massive 59.7% decline in the XRP daily burn volume, suggesting significantly reduced network activity amid the broad crypto market uncertainty.
Is XRP rebound still possible?
Although the XRP burn metric has not proven to be a key determinant of its potential price action, the massive slowdown in the metric shows an overall downtrend in XRP’s on-chain movements, which shows that the demand for the asset for payments has been relatively low over the last day.
Historically, slowdowns like this fee-driven burn activity have often come at a time when the broader crypto market is slipping into another pullback phase.
Thus, XRP might be entering another correction phase despite the short-lived resurgence witnessed earlier in the week. Amid this negative trend, all major cryptocurrencies, including Bitcoin, are trading lower than previous levels over the past 24 hours.
Data from CoinMarketCap shows that XRP has declined by nearly 2% over the last day, trading at around $2.03 as of writing time.
While the decline in the burn metric may not be used to predict what the next XRP price action will be, it hints at cooling momentum despite the recent XRP ETF hopes, reflecting a drop in payment transactions from institutions and retailers and also a drop in network movement.
Despite these negative on-chain metrics, investors have remained optimistic about a potential breakout for XRP, with many expressing belief that the leading altcoin could still reclaim the crucial $3 level before the end of the year.
This resilience portrayed by the XRP community is driven by the rapidly growing inflows pulled in by the existing XRP ETFs that have continued to show strong daily performance.