Although XRP has continued to show mixed price action, recent onchain data from XRPScan shows that its network activity is growing.
After a full week of slowed participation on the network, the data shows that the XRP burn activity has just witnessed a sharp increase over the last day.
Over 1,114 XRP burned in 24 hours
Over the last 24 hours, the amount of XRP burned through transaction fees has surged substantially from levels seen during the week.
As of October 23, the data shows that a total of 1,114.97 XRP was burned as transaction fees, marking an increase of 27.5% from the 874.27 XRP burned the previous day.
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While this also represents the highest daily burn seen in over two weeks, the data further showed that the amount of XRP permanently removed from circulation stands well above the 30-day average of 808.1 XRP.
After its largest spike of the month, which saw over 8,000 XRP burned on October 2, the XRP burn rate has continued to fluctuate considerably throughout the month.
XRP network usage grows
It is important to note that the sharp spike in the XRP burn rate signals increased participation in network activity, as it is a mechanism the XRP Ledger uses to burn a small amount of XRP whenever a transaction is processed.
While this mechanism allows the network to gradually reduce the total supply of XRP over time, a rise in activity provides a bullish outlook for the asset, as it not only signals increased participation but also boosts scarcity, potentially fueling demand.
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