The $XRPLedger (XRPL) witnessed a massive spike in the $XRPburn rate amid a price surge that saw $XRPbreach the much-coveted $0.65 price territory.

The broader crypto market saw a resurgence of bullish momentum, and $XRPwas not left out in the rally. $XRPbegan March below the pivotal $0.60 level, changing hands at $0.5868. Nonetheless, the token quickly broke through major resistance levels to close on March 1 at $0.6013.

This slow but gradual price uptick spilled into March 2, resulting in a surge to a high of $0.6501, as $XRPrecorded one of its most bullish days of the year. Interestingly, amid the rally, the $XRPburn rate saw a massive spike, towering over the average of 3,000 tokens a day.

Over 6K $XRPBurned

According to datafrom leading XRPL explorer XRPScan, the burn rate increased to 6,721 $XRPon March 2, marking the highest intraday burn in over a month. The last time $XRPrecorded a similar spike in burn rate was on Jan. 16, 2024, when the network incinerated 7,609 $XRP.

$XRPBurned as Fees | XRPScan

Notably, the network recorded multiple spikes in burnsfrom Dec. 30, 2023, to Jan. 7, 2024, owing to the launch of XAH, the native token of the XRPL sidechain Xahau network. Market participants continuously burned$XRPtokens to mint XAH during this time. Following the recent burn, the total burned tokens have increased to 16.178 million.

The latest increase in burn rate can be attributed to a rise in network activity as investors flock to the XRPLto execute transactions. Active addresses on the network have also seen an upsurge throughout this year, sitting at 18,363 on March 2, much higher than the 7,700 average of last year.

It bears mentioning that network activity differs considerably from trade volume, as the latter measures the amount of $XRPtokens traded in the market. This metric also saw an increase on March 2, hitting a high of $2.96 billion over a 24-hour, per CoinMarketCap data.

Inflation Discussions and Impact on Price

The discussion around $XRPinflation and its effects on price movements has dominated the $XRPcommunity. However, some community figures like to believe that the deflationary trendtriggered by its burn mechanism could also impact price movements.

According to on-chain data, the $XRPLedger is designed to automatically burn fees, which currently sit at $0.0001 per transaction. This mechanism helps to mitigate the risks of spam transactions. While its original intent is not to bolster $XRP’s price, some proponents have argued that it could help in this manner.

Ripple CTO David Schwartz has debunkedarguments for this theory, citing the previous monumental Stellar (XLM) burn. Meanwhile, $XRPhas breached the $0.65 levelas of press time, currently changing hands at $0.6605 amid an impressive 5.87% gain in 24 hours.

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