Recent developments surrounding Coinbase's participation in burning XRP and the digital asset's future price movements have sparked significant discussion within the XRP community. Below is a comprehensive analysis of current trends and market predictions for XRP.
What Is Coinbase's XRP Burning Trend?
Coinbase, one of the leading cryptocurrency exchanges in the U.S., has been actively involved in burning XRP. According to data from the blockchain explorer XRPScan, Coinbase burns a portion of the fees it collects from each internal XRP transfer. This practice began after Judge Analisa Torres clarified that XRP is not considered an investment contract, prompting Coinbase to relist the token.
How Does Coinbase Burn XRP?
Whenever Coinbase processes an internal transfer, it burns 20 XRP as a transaction fee. This fee—significantly higher than the current standard rate of 10 XRP—is believed to help empty the wallets involved in these transactions. Thomas Silkjær, Head of Analysis & Compliance at the XRP Ledger Foundation, noted that Coinbase could further reduce costs by deleting associated wallets instead of overpaying fees.
XRP Analysis: Impact and Price Predictions
The XRP community has reacted strongly to this development, as burning XRP is often viewed as a bullish effort that benefits the token's long-term value more than the exchange itself. Recently, 39,401,162 XRP (worth $20,712,323) were transferred from an unknown wallet to Coinbase, highlighting this trend. At the current price of $0.5234, the overpayment amounts to approximately $10.468 per transaction—a relatively high fee compared to other protocols. This underscores XRP's competitiveness as a viable payment method, particularly for small retail transactions. Despite ongoing legal challenges, XRP remains one of the top crypto payment tokens in the industry.
XRP Price Forecast
XRP's price has seen a slight decline, dropping 0.47% over the past day. Analysts suggest that current trading dynamics indicate prolonged sideways movement.
On the hourly chart, XRP is closer to its local support level, and a breakdown could push it toward $0.52. In longer time frames, the token struggles to sustain levels above $0.53. If buyers fail to regain momentum, a correction toward the $0.51 zone is likely.
Market Sentiment
Mid-term outlooks remain cautious due to limited trading days left in this cycle. As a result, analysts expect continued consolidation between $0.50 and $0.54. As of the latest update, XRP trades at $0.5235.
👉 Discover how XRP's burning mechanism impacts long-term value
FAQs
Why is Coinbase burning XRP?
Coinbase burns XRP to manage transaction fees and reduce wallet clutter, potentially creating long-term value for the token.
How does XRP burning affect its price?
Burning reduces supply, which can increase scarcity and upward price pressure if demand remains steady.
What’s the short-term price prediction for XRP?
Analysts predict sideways trading between $0.50 and $0.54, with potential tests of support at $0.51.
Is XRP a good payment token?
Yes, its low fees and fast transactions make it competitive for retail payments, despite regulatory challenges.
👉 Explore XRP's role in crypto payments
Note: Market conditions are dynamic; conduct independent research before investing.