Key Highlights
- XRP fee burns dropped 34.97% in 24 hours, showing weaker activity on the XRP Ledger.
- XRP price recovered to around $1.34, but trading volume fell sharply, showing mixed market sentiment.
- Meanwhile, XRP ETFs continued seeing strong inflows, with $11.88 million added in a single day and 16 straight days of positive flows.
XRP, the native token of Ripple, saw a huge slump in network activity today as the amount of XRP burned in fees dropped significantly.
According to data from CryptoQuant, the total XRP burned as transaction fees on the XRP Ledger dropped by 34.97% in just 24 hours. The decline came at a time when the wider crypto market was unstable, with many major coins showing weak movement and unstable prices.
The data shows that the total XRP burned as fees dropped from 755 XRP to 491 XRP in one day. This is crucial because every XRP transaction on the network burns a small amount of XRP.
Price recovers, but trading activity slows down
Despite the drop in network activity, the price of XRP has managed to rebound. At the time of writing, the token is trading around $1.34, posting a gain of about 1.95% over the last 24 hours.
However, trading volume fell 13% during the same period to roughly $1.86 million, down from about $2.28 million recorded earlier in the day. This suggests mixed sentiment among market participants. While the price has rebounded, overall trading activity has weakened.
Investors keep pouring money into XRP ETFs
At the same time, money flowing into XRP investment products tells a different story. According to data from SoSovalue, XRP exchange-traded funds (ETFs) brought in about $11.88 million on May 29 alone.
This was the 16th straight day of positive inflows, bringing total inflows to around $1.42 billion. This means that while everyday users are less active on the network, larger investors are still putting money into XRP-related products.
Overall market under pressure
The crypto market has been going through a lot of volatility lately, and many traders have become careful because prices have been unstable. Major cryptocurrencies, including Bitcoin, Ethereum, and Zcash, all saw bearish conditions this week, as traders reacted to volatility across the sector.
XRP briefly fell below $1.20 earlier in the week before stabilizing back above $1.30, but the recovery has been slow and uneven. Overall, the lower fee burn rate shows that network usage is still weak. At the same time, ETF inflows and small price gains show that interest has not fully disappeared.
Also Read: XRP ETFs Dominate Weekly Inflows as Bitcoin and Ethereum Bleed Capital