XRP’s total supply has significantly decreased over the last 30 days, according to statistics from the XRP Ledger Explorer, according to a new disclosure by the Twitter account 24HRSCRYPTO. At an average rate of around 8,233 tokens each day, about 247,016 XRP tokens have been irreversibly destroyed and withdrawn from circulation during this time.
Senior staff software engineer at Ripple Neil Hartner took to Twitter to explain the reason for this unexpected increase in XRP burn. He said that a string of account deletions on the XRP Ledger network, where each deletion resulted in the burning of two XRP tokens, were to blame for the decrease in supply.
Hartner added that the majority of the deleted accounts were older ones with balances of 20 XRP or more, which was the prior account reserve threshold.
The unexpected drop in the cryptocurrency’s total supply has piqued the interest of investors and XRP fans. While some believe that such a large burn might potentially affect the token’s value, others see it as evidence of network optimisation.
The steps taken by Poloniex in June 2023 are one important incident that contributed to this issue. The enormous burn of 171,132 XRP coins was caused by the cryptocurrency exchange giant purportedly deleting a stunning 85,566 out-of-date XRPL accounts.
The Ripple developer claims that this procedure is now over, thus it is doubtful that the account deletions will continue on the same scale for the near future.
