The amount of XRP burned as fees has declined by 34.97% within just 24 hours according to data from crypto analytics platform CryptoQuant.
This is coming as network activity continues to trend lower amid the broader market volatility that has caused leading crypto assets to break crucial support levels.
XRP network activity weakens
After several days of consistent price downturns, it appears that participation on the XRP ledger is beginning to fade as traders begin to take caution.
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As of May 30, the amount of XRP burned as fees has declined to 491 XRP, marking a substantial decrease from the 755 XRP recorded on the previous day.
The market is beginning to show signs of a potential recovery as leading crypto assets including Bitcoin and XRP are showing mild price increases of less than 1%.
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Despite these subtle recovery signs, XRP is still trading way below its monthly high at around $1.5 as momentum remains weak and investors are still hesitant.
Although the XRP burn metric does not primarily determine its potential price move, it is relevant in weighing its potential market performance.
This is because the metric plays a subtle role in measuring XRP’s scarcity level which could help determine if demand is rising or slowing down.
XRP stabilizes around $1.34
After plunging below the key support level at around $1.2 earlier this week, XRP is back to trading steadily above $1.3, flashing signs of a short-term price recovery.
As of the time of writing, data from CoinMarketCap shows that XRP is trading at $1.34, a price decline of 0.79% over the last 24 hours as its price move remains weak.
Nonetheless, the sharp decline in XRP’s burn rate coinciding with a modest increase in its price is flashing mixed signals. Analysts believe that the asset may be preparing for a major price recovery if momentum builds.