Uncovering the Reasons Behind the Dramatic 41% Drop in XRP Burn Rate

XRP's Burn Rate Declines, Signaling Slowdown in On-Chain Activity

Recent data from XRPScan reveals a notable drop in XRP burned as transaction fees, pointing to reduced on-chain activity on the XRP Ledger. The burn rate plummeted from 3,323 XRP on June 2 to just 1,930 XRP on June 3—a 41% decrease within 24 hours.

Payment Transactions Hit 8-Month Low

The decline in burn rate aligns with a sharp reduction in payment transactions, which have fallen to their lowest level since October. XRPScan data shows payment transactions—representing value transfers between accounts—dropped to 320,747, far below the previous months' average of over one million.

New Account Creation Slows

The network is also experiencing fewer new account creations. While account creation requires a 1 XRP deposit (reclaimable upon deletion), the total XRP burned stands at 13,945,213 according to XRPscan.

Contrast With Strong Q1 Performance

This slowdown follows a robust first quarter where Messari reported:

• 36% quarterly growth in payment transactions
• 142% increase in active addresses
• 13% rise in average daily transactions (2.04 million)
• Nearly 8 million NFTs minted using XLS-20 standard

Regulatory Milestone and Upcoming Event

The Dubai Financial Services Authority (DFSA) recently approved Ripple's RLUSD stablecoin for use in the Dubai International Financial Centre (DIFC). Meanwhile, the crypto community anticipates potential announcements at the XRP Ledger Apex 2025 event in Singapore (June 10-12).