By
Svetlana Soroka
April 29th, 2024
The recent increase in XRP tokens on Coreum has sparked different reactions among the XRP community. Some users think this might cause a shortage of XRP, pushing its price higher.
The Coreum Network is getting a lot of attention lately because there’s been a big increase in the number of XRP tokens being moved to its platform.
According to an update by Coreum on X, the number of XRP tokens on the Coreum network has grown by 2703% in just two weeks, reaching a total of 1.6 million. People who use XRP are excited about this quick rise and want to know what it means for the future of the coin.
New Coreum and XRPL Bridge
A new bridge between Coreum and the XRP Ledger (XRPL) has driven the total amount of XRP tokens on the Coreum network to increase lately.
XRP and other assets can be easily moved between the two networks with this bridge. entry was limited at first when the bridge opened for business on March 12. Following Coreum’s public launch on March 20, the number of people holding XRP has grown by 2287 percent, hitting 191. The total number of bridged XRP tokens now stands at 57,191.
The most recent data from Coreum’s blockchain explorer shows that there are now 1,614,243 XRP tokens in the Coreum ecosystem held by 462 addresses. This marks a huge 2,703% increase in XRP tokens on the network since March 22. A significant portion, about 1.2 million out of 1.6 million XRP, is now in liquidity pools on the Coreum-based decentralized exchange Pulsara.
The XRP coins on the XRP Ledger are locked in a bridge contract when XRP is moved from the XRP Ledger to the Ethereum network using the Coreum bridge. After that, the bridge generates the same number of XRP tokens on the Ethereum network. For Ethereum users, this means they get the same amount of XRP, but these tokens are not the real XRP coins from the XRP Ledger.
Locking XRP in the bridge contract reduces the total supply and removes them from circulation. This has caused a lot of speculation in the XRP community, especially with the rise in XRP tokens on Coreum.
Community Reaction and Future Outlook
The recent increase in XRP tokens on Coreum has sparked different reactions among the XRP community. Some users think this might cause a shortage of XRP, pushing its price higher. On the other hand, some see it as a good thing that could boost the use and availability of XRP.
Wow! Y’all that I was playing when I said there would be an #XRP Supply Shock!
This is just the start of bridges, DeFi and XRP being locked up! Also, as activity picks up, more XRP is being BURNED! 🔥 https://t.co/hr3wQf0qjS— Zach Rector (@ZachRector7) April 9, 2024
In reaction to Coreum’s update, media figure Zach Rector recently brought up a key point. He reiterated what he said earlier about an XRP supply shock that could potentially happen. Rector said that this could happen as more bridges are built and more people use XRP, which would cause more XRP to be burnt because there would be further activity on the chain.