XRP Demand Cools: Trading Volume Plummets 27%, ETF Outflows Continue, Burn Controversy Resurfaces

Gate News, March 16 — Latest on-chain and market data show that XRP’s market demand has recently cooled significantly. Although the ecosystem continues to expand, declining trading volume and signs of capital outflows indicate that short-term interest in this top-market-cap cryptocurrency is waning.

According to CoinGecko data, since late February, XRP’s weekly trading volume has steadily decreased from approximately $22.9 billion in the last week of February to $16.6 billion last week, a drop of 27.5%. The shrinking trading scale reflects reduced market participation, and with the overall crypto market direction still uncertain, trading momentum is gradually weakening.

Meanwhile, capital flows related to XRP spot ETFs have also slowed. Data from SoSoValue shows that since March 5, there have been no single-day net inflows into XRP ETFs. Over the week ending March 13, these products recorded a total net outflow of about $28.07 million, indicating some institutional funds are withdrawing.

Despite the weakening capital flows, XRP’s price has slightly rebounded along with the overall crypto market trend. Data shows that during the market rebound, XRP’s price increased by approximately 3.89%, but the overall trend remains within a previous oscillating pattern. At the same time, Ripple continues to push expansion efforts, including applying for new financial licenses and establishing partnerships, but these developments have not yet significantly driven XRP’s price.

As market sentiment becomes divided, some XRP holders have proposed new governance suggestions on social platforms. Some users suggest Ripple consider burning a portion of tokens held in custodial accounts to reduce circulating supply and potentially boost the price.

In response, David Schwartz stated that simply reducing token supply does not necessarily lead to a price increase. He cited Stellar’s 2019 token burn of about 50% as an example, noting that this move did not result in long-term significant price gains.

Market analysts believe that XRP’s future price will still depend on the overall crypto market environment and actual application growth. Currently, investors are generally watching for new market catalysts that could reignite XRP demand and trading activity.