Ripple, a fintech company, published its Q1 2024 report, showing significant growth in the XRP Ledger (XRPL) and its token, XRP.
The report details an increase in the number of transactions and activity on the network. These growth metrics align with significant Progress in Ripple’s ongoing legal dispute with the United States Securities and Exchange Commission (SEC).
XRP Ledger: Increased Network Activity
During the first quarter of 2024, on-chain transaction activity on the XRPL increased by 108%. Approximately 251.39 million transactions were recorded, compared to the total of 121.03 million in the last quarter of 2023. This number indicates an increase in transactions on the XRPL. It reinforces its status as a reliable platform for efficient and affordable payments.
Moreover, the average cost per transaction dropped by 45% to about 0.000856 USD. The company stated that the decrease in average cost per transaction indicated a reset and suggested that there was no network congestion during the quarter.
Meanwhile, the distribution of XRP trading volume among cryptocurrency exchanges stayed the same in the first quarter of the year. Bybit, Binance, and Upbit made up over 70% of the total traded volume. During Q1, the amount of trading with fiat pairs went down from 15% in Q4 to 11%. Currently, the majority of XRP trading occurs against Tether (USDT).
Ripple Vs. SEC
The report also discussed the ongoing lawsuit against the United States SEC. The SEC filed the lawsuit in December 2020, claiming that the executives conducted an initial public offering (IPO) of XRP, which was considered an unregistered security during the capital-raising period. Ripple responded to the SEC’s request for $2 billion in remedies on April 22, disagreeing with it.
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The firm argued that the law doesn’t permit the SEC to demand disgorgement or interest on disgorgement unless they can prove someone was harmed. Ripple explained that both parties would wait for the Judge to decide on the final remedies, which would likely happen in the coming months. It added that Ripple remained confident that the Judge would handle the remedies phase fairly.
