The XRP ($2.84) Ledger (XRPL) community recently saw a significant DROP token burn, sparking speculation within the community. XRPScan, a transaction explorer for XRPL, reported the event and called on the community for a “moment of silence” in respect of the burnt tokens.

According to XRPScan, 10,000 DROP tokens were burned on October 18 at 06:56 UTC. The burn transaction, which incurred a minimal fee of 0.000012 XRP, went unnoticed by the larger XRP community until XRPScan highlighted it in a recent social media post.

Community Speculation on Intent Behind the Burn

The unexpected DROP burn raised questions about whether it was intentional or accidental. Thomas Silkjaer, Head of Analytics and Compliance at the Inclusive Financial Technology Foundation (InFTF), suggested DROP token issuers likely initiated the burn intentionally. XRPScan supported this, noting the issuing account appears on First Ledger’s About page, the platform hosting DROP.

DROP’s Current Valuation and Supply Impact

DROP, a memecoin on XRPL and tradable on First Ledger, currently holds a value of $5.07 per token, marking a 17.44% dip over the past 24 hours. With 10,000 tokens burned, approximately $50,700 worth of DROP tokens disappeared from circulation. Initially, DROP had a total supply of one million tokens, but after the recent burn, only 989,000 tokens remain, according to data from First Ledger.

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Earlier this month, DROP’s market cap reached $10 million, as shared in an October 26 tweet from the development team. However, it has since dropped to $5.01 million. The token burn and the market cap dip have sparked further discussions within the community on DROP’s future trajectory and its impact on XRPL.

First Ledger Highlights Bullish Potential for XRP Burns

This development aligns with First Ledger’s recent comments on the impact of XRPL-based memecoins on XRP’s price. In a post, the First Ledger team noted that the launch of memecoins like DROP on XRPL could enhance XRP burns. 

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Increased burns result from transaction fees, which users pay in XRP and are then burned. First Ledger expects rising interest in XRPL-based tokens to elevate XRP burn rates, potentially driving up XRP’s price.

As of now, XRP Ledger’s transaction fees have burned a total of 12,964,929 XRP, and the rising demand for XRPL memecoins could further accelerate this burn rate, suggesting a potentially bullish trend for XRP’s valuation.

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