The market capitalization of XRP leaped 31% in Q3 2024 to $34.7 billion, which ranked it as the most valuable crypto asset. Price grew 28.5%, while the circulating supply only grew 1.6%.
Per the report from Messari, the XRP Ledger was continuously burning transaction fees and deflationary pressure was applied. Over 13 million XRP have been burnt since creation, worth around $7.9 million, though 1 billion XRP valued at around $610 million are released every month from escrow to Ripple.
This will go on until all the remaining 39 billion XRP becomes liquid. Unlike most other networks, XRPL does not reward transaction fees to validators. The validators are incentivized for the network’s decentralization and not with rewards.
This means that XRP’s growth was opposite to that of the overall crypto market, which contracted 3% in the same period. On a year-over-year basis, market capitalization increased by 26%. Burning transaction fees remains one of the most effective means of reducing supply, thereby adding value to remaining holders.
Increase in XRP transactions and new addresses
Q3 saw significant increases on the network: average daily transactions rose 94% to 1.7 million, and new addresses increased 10%. Microtransactions below 1 XRP dominated these; however, they were driven by spam campaigns. Active addresses were down 3%, as active senders fell 20% while receivers rose 7%.
The 110% increase in payment transactions marked recovery after two-quarters of the decline, with centralized exchanges and custodians using destination tags as major contributors.
For the second time, the number of active receiver addresses outpaced that of active senders. Diversity in XRP’s sets of transactions increased – especially with large increases in the minting and burning of NFTs. Despite the fact, XRP extends its lead due to its extremely low fees and remarkably high volume of transactions.
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