Expert Says XRP Gains Value from Utility, Not Burns

A recent discussion within the XRP community on X has sparked a debate over the role of token burn in determining the value of XRP

The discussion, which initially centered on whether Ripple’s engagement with policymakers has subtly influenced XRP’s adoption, took an unexpected turn when an X user, “Fishy Catfish,” criticized the token’s low burn rate.

Only 0.014% of XRP Burned in Over a Decade

The X user pointed out that since the XRP Ledger (XRPL) launched in 2012, only 0.014% of the token’s supply has been burned.

Currently, a total of 14,215,351 (14.21 million) XRP, representing about 0.014% of the token’s 100 billion total supply, has gone up in flames. This amount is incredibly low when compared to Shiba Inu, which has seen over 41% of its one quadrillion supply burned.

Notably, Fishy Catfish pointed out that while many crypto projects aggressively burn tokens to boost value for their holders, the same cannot be said for XRP, which maintains an exceptionally low burn rate.

This view reflects a common belief in the crypto community, where many consider token burns as a way to create artificial scarcity via burn.

XRP Value is Driven By Utility

However, attorney Bill Morgan countered Fishy’s perspective with a different economic argument about XRP. He argued that only tokens lacking intrinsic value rely on burns to artificially boost their prices.

The pro-XRP lawyer suggested that valuable tokens do not need burns to grow in price. His commentary stresses that XRP’s value improves based on its utility and demand, not burns.

Rather than token burns, XRP community members have continuously pointed to the token’s growing real-world use cases, particularly its use in cross-border settlements, as its major strength.

Its utility is gradually expanding beyond payments, with several institutions now adopting it as a reserve asset. Recently, InsurTech company Reliance Group acquired $17 million worth of XRP for its treasury.