Will XRP Burn Guarantee Price Gains? Ripple CTO Emeritus Draws XLM Parallel
Analysis
Price Impact
MedWhile a significant xrp burn of its escrow could theoretically reduce supply and increase scarcity, historical parallels with stellar (xlm) suggest that the price impact might not be as dramatic as some expect, especially since xrp has already experienced a large supply reduction previously. the price mirroring of xlm also indicates that external factors or broader market sentiment might outweigh the direct impact of a burn.
Trustworthiness
HighPrice Direction
NeutralThe discussion suggests that a large xrp burn might not guarantee significant price gains due to historical precedents with xlm, which also underwent a large supply reduction without a sustained price surge. the market's reaction to such an event is likely to be influenced by broader market conditions rather than the burn alone.
Time Effect
LongThe discussion implies that the impact of a supply change, like a burn, is often diluted over time by market fluctuations and broader crypto trends. while there might be a short-term reaction, the long-term price action is more likely to be driven by other fundamental and market factors.
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Cover image via U.Today Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available. In a recent X discussion, Ripple CTO Emeritus David Schwartz addresses speculation on the impact of a large XRP burn on its price. Advertisement The conversation started when an X user criticized the recent Ripple share buyback plan, asking to do something that benefits XRP holders. Ripple has kicked off a share buyback that would value the company at $50 billion, with plans to buy back up to $750 million in shares from investors and employees. Somewhere on this chart, XLM burned about half its supply. Can you find where? pic.twitter.com/WfJ8tG6NSF — David 'JoelKatz' Schwartz (@JoelKatz) March 12, 2026 The X user had suggested that Ripple burn its XRP escrow, saying it can actually make XRP worth more than its current price of $1.38. For context, total XRP escrowed, according to xrpscan, is over 33.6 million (33,625,688,696) XRP. Advertisement XRP has a fixed maximum supply of 100 billion tokens, all of which were pre-mined at its launch in 2012, implying that no new tokens can be created. A total of 33.6 billion XRP in escrow represents about one third of the total XRP maximum supply, so destroying the escrow might imply burning a third of XRP supply. Thus, a burn of the escrow would be gigantic in this context. But despite being gigantic, the potential impact might be minuscule. HOT Stories Billionaire Druckenmiller Claims Crypto Could Be New Reserve Currency Crypto Market Review: Unexpected Shiba Inu (SHIB) Breakout Recorded, Cardano (ADA) Grinds to Yearly Bottom, Is $71,000 Flashing on Bitcoin's (BTC) Horizon? You Might Also Like Thu, 03/05/2026 - 14:17 Ripple CTO Emeritus Shares Candid Truth about XRP and Crypto Market By Tomiwabold Olajide Schwartz highlighted this in response to the X user, who suggested the escrow burn, using XLM as an analogy. Advertisement XLM 50% supply burn revisited In November 2019, the Stellar Development Foundation (SDF) burned 55 billion XLM tokens, more than half (or 50%) of the total supply, slashing it from 100 billion to 50 billion XLM. This is even more gigantic in comparison if the XRP escrow (about 33% of supply) were to be burned. Not even close (at the scale of that chart). — David 'JoelKatz' Schwartz (@JoelKatz) March 12, 2026 The reason for the ex-Ripple CTO's analogy is that XRP has always mirrored the XLM price ; thus, comparing the impact of a massive burn on the XLM price might be a good way to deduce what might happen if a large XRP burn occurs. You Might Also Like Wed, 03/04/2026 - 14:17 Stellar (XLM) Prints Golden Cross on Hourly Chart By Godfrey Benjamin However, the impact of a 50% supply burn on XLM price was not visible, as it continued to mirror the XRP price over the years. Schwartz presented this deduction in a question he posed to his X followers: "Somewhere on this chart, XLM burned about half its supply. Can you find where?" The chart he referred to was that of XRP and the XLM price , with X users barely able to spot the point at which XLM burned half of its supply. Another X user suggested March 2019, to which Schwartz responded that this was not even close, as the large burn took place in November of that year. According to sources at the time, XLM price briefly rose 14% following the large burn. At a current price of $0.16, XLM is down 82.61% from an time high of $0.9381 attained on January 4, 2018. #XRP News #XRP #XLM