The XRP Ledger (XRPL) community recently observed a notable event: a huge amount of DROP tokens were burned. XRPScan, an XRPL explorer recorded this transaction, igniting curiosity and speculation within the community.
On October 18, at 06:56 UTC, 10,000 DROP tokens were permanently removed from circulation, with the transaction incurring a fee of 0.000012 XRP. The XRPScan team took to social media yesterday to highlight the event, humorously encouraging followers to hold a “moment of silence” for the burned tokens.
Right, just saw the same account mentioned on FL info page.
— XRPScan (@xrpscan) October 28, 2024
Was the Token Burn Intentional? Analysis from Industry Executives
The sudden appearance of the whopping burn on social media prompted many XRP enthusiasts to discuss whether the action was intentional or accidental. Commenting on the transaction, Thomas Silkjaer, Head of Analytics and Compliance at the Inclusive Financial Technology Foundation (InFTF), proposed that the burn was deliberate.
Silkjaer suggested that the issuer of DROP tokens may have intentionally initiated the transaction, an interpretation shared by XRPScan, which noted that the issuing account was recently referenced on First Ledger’s About page.
DROP Token Value and Recent Performance Trends
DROP, a memecoin built on the XRPL and available on the First Ledger platform, is currently valued at $4.51 per token, reflecting a 15.76% drop in price over the last 24 hours. With 10,000 DROP tokens removed from circulation, the recent burn equals a loss of approximately $45,100 in market value.
Since its launch, DROP has had a total supply of 1 million tokens, though this figure has since decreased to 989,000, according to First Ledger’s records. The token had reached a valuation of $10 million earlier this month but has since declined to $4.46 Million as of the latest reports.
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Implications of XRPL-Based Memecoins on XRP
The recent burn coincides with discussions from First Ledger regarding the potential impact of XRPL-based memecoins on the value of XRP. First Ledger posted on social media that the presence of memecoins on XRPL could boost XRP’s price by promoting increased token burns.
According to First Ledger, memecoins and other tokens based on XRPL require users to pay transaction fees in XRP, which are subsequently burned. This process reduces XRP’s overall supply over time, potentially supporting an upward trend in its price as memecoins increase in popularity.
XRP transaction fees have led to the burning of approximately 12,964,929 XRP. First Ledger believes that the growing demand for XRPL-based memecoins will continue to increase XRP burns, and this enhanced burn rate could ultimately contribute positively to the coin’s long-term valuation.
As the XRPL community expands, the recent DROP burn and related speculation offer a glimpse into the ecosystem’s evolving dynamics and the impact that emerging tokens could have on XRP’s market position.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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