XRP Network Activity Plunges as Market Weakens — Can a Rebound Still Happen?

Amid the ongoing downturn in the broader crypto market, XRP has experienced a sharp decline in network activity, raising concerns about the asset’s short-term momentum. Data from XRPSCAN on Saturday, Dec. 6, reveals that total XRP burned as transaction fees dropped from 462 XRP on Dec. 5 to just 186 XRP—a steep 59.7% decline within 24 hours. This drastic reduction in daily burn volume signals a notable slowdown in on-chain activity and diminished demand for XRP-based transactions.

While XRP’s burn metric has never been a primary price indicator, sudden contractions in fee-driven burns have historically aligned with market pullbacks. The latest drop reinforces the idea that XRP may be entering another corrective phase after a brief resurgence earlier in the week. This cooling activity mirrors the broader market slump, with major cryptocurrencies—including Bitcoin—trading lower over the same period.

Despite the downturn in network metrics, investor sentiment around XRP remains surprisingly resilient. XRP is trading around $2.03, down nearly 2% in the last 24 hours according to CoinMarketCap. Although reduced burn volume does not definitively predict upcoming price action, it reflects a slowdown in payment usage from institutions and retail users, as well as lower overall network movement.

Still, many within the XRP community remain optimistic, encouraged by the strong inflows into newly launched XRP exchange-traded funds. With XRP ETFs surpassing the $1 billion milestone, investors believe the asset could still attempt a breakout, potentially reclaiming the critical $3 level before year-end. This growing institutional interest continues to fuel hopes for a rebound, even as on-chain indicators signal caution.