XRP News Today: XRP Burn Activity Dips 25.96 Amid Slumping On-Chain Payments and Price Drop

XRP has experienced a notable decline in both burn activity and payment volume, signaling a bearish shift in investor sentiment amid ongoing market uncertainty. On August 5, 2025, the burn rate fell by 25.96% compared to the previous day, with XRP burned as transaction fees dropping to 1,808 tokens from 2,442 the day before [1]. This sharp reduction in deflationary activity coincided with a significant drop in on-chain payment volume, which reached a two-month low of 727,329 transactions [1]. The decline in both metrics suggests a slowdown in active usage and liquidity, raising concerns about the token’s near-term fundamentals.

The price action of XRP has mirrored the on-chain trends. After touching an intraday high of $3.1028 in early trading, XRP fell to $2.9654 by the end of the day, reflecting a 2.78% decline in 24-hour trading [1]. The token is currently trading around $2.97, struggling to regain momentum above critical resistance levels. Analysts have noted that if XRP can maintain a price above $3.10, it could potentially break out of its current consolidation phase and move into a $3.55–$3.65 range, a key technical target for bullish scenarios [1]. However, the recent on-chain data does not currently support such a scenario, as both burn activity and transaction throughput remain subdued.

Despite the short-term bearish signs, some analysts remain optimistic about the long-term potential of XRP. The ongoing legal progress and the anticipated launch of an XRP ETF by the SEC are viewed as potential catalysts for renewed interest and price appreciation [1]. If regulatory clarity continues to develop—particularly around stablecoin frameworks and institutional adoption—XRP could see significant value growth over the next decade. However, these forecasts are speculative and should not be interpreted as immediate market signals [5].

The broader crypto market remains cautious, with investors closely monitoring developments in regulatory policy and macroeconomic conditions. While XRP remains a top 10 cryptocurrency by market capitalization, the recent dip in burn rate and payment volume indicates that the deflationary narrative may be losing steam for now. Institutional interest persists, but the immediate challenge for XRP is to reinvigorate on-chain activity and demonstrate stronger utility, particularly in its cross-border payment applications [8]. As such, the coming weeks will be critical in determining whether XRP can stabilize and regain bullish momentum or if the current bearish trend extends further.

Source:

[1] U.Today (https://u.today/xrp-down-2596-in-burn-activity-amid-critical-price-reversal)

[2] AInvest (https://www.ainvest.com/news/xrp-news-today-cold-wallet-raises-5-7m-shib-9-drop-xrp-consolidation-2508/)

[5] AOL.com (https://www.aol.com/prediction-xrp-ripple-worth-much-072500398.html)

[8] Forbes (https://www.forbes.com/advisor/investing/cryptocurrency/top-10-cryptocurrencies/)