Quick overview

Live XRP/USD Chart

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XRP holders have engaged in a heated debate regarding the potential direct rise in the market value of XRP through the burning process.

 

This sentiment was highlighted in a recent XRP Launch post, which suggested that Ripple might push the price above $1.3894 by questioning why Ripple does not burn XRP to benefit holders. David Schwartz, former Ripple CTO and a core architect of the XRP Ledger, provided a nuanced perspective on X.

The conversation reflects a common assumption among retail investors: reducing supply automatically boosts price. He mentioned historical examples, noting that “XLM burned about half its supply on this chart.”  Schwartz’s point emphasized that even significant token burns in other networks do not necessarily lead to immediate price appreciation.

This highlights the limitations of direct supply manipulation. Spade argued that these mechanisms offer little direct benefit to market value because they primarily burn XRP indirectly during transactions.

Schwartz explained that although these kinds of initiatives don’t directly affect prices, they can have a big indirect impact.

These actions boost adoption, liquidity, and network activity by extending XRP’s usefulness through On-Demand Liquidity (ODL), stablecoin settlements, and cross-border payments. Even though burns themselves have little direct impact, widespread use and functional integration can eventually improve XRP’s market position and support sustainable growth.