What Moves XRP Price? Ripple CTO Emeritus Breaks Down 3 Factors

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available. XRP's price is shaped by a combination of market factors, sentiment and network fundamentals, some of which directly impact its price and some indirectly. This conversation on X stemmed from an earlier discussion that sought to deduce the impact of token burning on the price. XRP burns tokens systematically, unlike massive burns carried out at once or at periodic times. Transaction fees are systematically burned on XRP Ledger, reducing the total supply of 100 billion XRP. Since XRP Ledger’s inception, about 14,303,916 XRP, according to XRPScan data, has been burned. This low burn rate might be attributed to the relatively low transaction fees on the network. In a response to an X user who speculated that a large burn in the case of XRP might boost its price, Ripple CTO Emeritus explained the potential impact using an XLM analogy. In November 2019, Stellar (XLM) burned 50% of its total supply, which had an indirect impact as its price briefly rose in the aftermath. As expected, Schwartz's observation came forward as a blunt truth, which did not sit well with some members of the crypto community. In a tongue-in-cheek response, an X user claimed Ripple USD (RLUSD), real-world assets (RWAs) and bridging with XRP provide no real price benefit to XRP. Schwartz responded, saying that these three things could sometimes have massive indirect impact on the XRP price, but there might be no benefit from their direct impact. No benefit from their direct impact. ...