Zach Rector, an experienced cryptocurrency analyst, has brought up an intriguing notion: XRP could experience a significant reduction in supply due to a potential large-scale token destruction event. This prospective occurrence would likely result in a substantial increase in value for the crypto token, given the influence of token burns on a digital currency’s worth.
How More XRP Could Be Burned
In a recent post on X (previously Twitter), Zach Rector expressed his belief that there will be a surprise reduction in the circulating supply of XRP. This is expected to occur due to two main reasons: first, with the development of XRP bridges, more XRP will be destroyed; second, there’s an anticipated rise in XRP being locked up. Additionally, DeFi transactions on the XRP Ledger could contribute to a higher rate of XRP burns.
When responding to news from Sologenic, a tokenization platform on the XRP Ledger, about the transfer of over 1.6 million XRP to the Cosmos ecosystem via the XRPL Coreum Bridge, Rector made a comment. However, another user questioning XRP’s benefits pointed out that there were no additional advantages to bridging XRP to other blockchains.
In response to Rector’s comment that constructing additional bridges could boost XRP‘s worth, this was a clear rebuke. Concurrently, another XRP user expressed doubt that the destruction of 1.6 million XRP would make a substantial price difference for the token, given its existing circulating supply exceeding 55 billion units.
XRP Is At A “Pivotal Moment”
In his YouTube video, Rector pointed out that XRP was experiencing a significant turning point, bringing up various advancements within the XRP community which could potentially boost the token’s usage. Among these developments were Ripple‘s plans to introduce its stablecoin on both the XRP Ledger (XRPL) and Ethereum platforms.
During his examination, Rector highlighted a notable comment made by Ripple‘s President Monica Lang. In this statement, she brought up the prospect of releasing a stablecoin on XRPL and Ethereum, suggesting it would open new possibilities for institutional and DeFi applications across various platforms. Furthermore, Lang emphasized that this stablecoin would broaden both XRPL and XRP‘s functionality.
In addition to mentioning the recent introduction of the Automated Market Maker (AMM) on the XRPL and the establishment of liquidity bridges, Rector indicated that these advancements offer a promising future for XRP. He is confident that they will boost the crypto token’s usage and value. After discussing XRP‘s strong underlying factors, he reiterated that it was unlikely for XRP to be left out of this bull market.
A cryptocurrency analyst we spoke about before is convinced that XRP won’t miss out on the ongoing bull market, even though its performance has been lackluster in the crypto sector so far. He explained his optimistic view by pointing to XRP‘s strong fundamentals.
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2024-04-11 00:11