Expert Reveals Why Everyone Is Calling XRP ‘Broken’

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As XRP continues to trade below many investors’ expectations, criticism surrounding the digital asset has become increasingly common.

Some market participants have described XRP as underperforming compared to other cryptocurrencies, leading to renewed doubts about its long-term potential.

Crypto commentator, Coach Chad, believes that the reaction may be short-sighted. In a recent tweet, Coach Chad suggested that many investors are abandoning XRP because its price has not moved as they anticipated.

He wrote, “Everyone is calling XRP ‘broken’ because it’s not moving the way they expected… But markets don’t reward impatience they reward positioning. The same narratives that make people give up are often the ones that quietly transfer wealth to those who stay focused.”

The post was accompanied by a video in which a speaker examined XRP Ledger transaction fees and questioned whether the network’s token burn rate may be significantly higher than previously assumed.

Claims About XRP Ledger Burn Rates

The speaker began by explaining that he had planned to publish a video outlining why he believes XRP could eventually reach $10,000. His original analysis focused on the XRP Ledger’s base transaction fee, which is typically set at 10 drops, with one XRP equal to one million drops.

He explained that network fees can increase the XRP Ledger’s load factor, a mechanism that adjusts transaction costs as network activity becomes heavier. According to his understanding, even during periods of congestion, transaction fees should remain relatively small, increasing from the base rate by modest amounts.

However, after reviewing what he described as live XRP Ledger transactions, he claimed that the observed fees appeared much larger than expected.

Observations Raise Questions

According to the speaker, some transaction batches involving roughly 130 to 160 transactions appeared to consume between 0.7 XRP and 2 XRP in fees. Based on those figures, he estimated that in some cases approximately 13,000 drops were being burned per transaction, far above the base fee levels he had previously used in his calculations.

Rather than presenting the figures as facts, he repeatedly acknowledged that he could be misunderstanding the data. He said he is still learning how certain aspects of the XRP Ledger operate and invited more knowledgeable community members to explain whether his interpretation was incorrect.

The speaker stressed that he would publish a follow-up video if someone could demonstrate where his calculations had gone wrong.

What Higher Burn Rates Could Mean

Building on his observations, the speaker revisited earlier projections regarding XRP’s long-term supply. He said his previous estimates assumed only the standard base burn rate, which suggested that approximately 360 million XRP could be removed from circulation annually if the network eventually processed one billion transactions per day.

Using what he described as a more conservative estimate of 3,000 drops burned per transaction under heavy network usage, he argued that annual burns could exceed one billion XRP if XRP achieves widespread adoption across financial institutions and payment systems.

He concluded by emphasizing that these figures remain based on his own interpretation of network activity and encouraged others to verify his analysis.

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