XRP Ledger Adoption Surges Despite Decline in Newly Created Wallets

XRP transactions experienced a substantial surge of 108% during the first quarter of 2024.
Ripple, however, disagrees with the proposed $2 billion penalty from the SEC for its XRP sales.
Ripple Labs Inc. recently released its first-quarter ecosystem performance report, which includes updates on its ongoing SEC complaint and highlights notable on-chain activity.
According to the report, the total number of transactions on the XRP Ledger protocol skyrocketed by a staggering 108%, jumping from 121,031,713 transactions in Q4 2023 to 251,397,881. This remarkable expansion was attributed to the influx of new applications and users on the protocol.
Furthermore, the amount of XRP burned for transaction fees doubled overall, increasing by 101% from 317,271 in Q4 2023 to 636,184. This significant rise emphasizes the heightened activity on the ledger. Additionally, the dollar volume on the decentralized exchange (DEX) saw a 5% increase, reaching $57,618,270 compared to $54,907,170 in the previous quarter.
Despite these positive trends, the report also highlighted several areas of decline. The number of new wallets created on the XRP Ledger decreased by 11% in Q4 2023, dropping from 208,522 to 185,809. On a positive note, the average USD transaction fee decreased by 45% to $0.000856. This reduction indicates a more cost-effective environment for users conducting ledger transactions, corroborating previous reports by Crypto News Flash.
The report also shed light on Ripple’s ongoing legal battle with the SEC. The SEC has accused Ripple of violating federal securities laws by selling XRP to institutional investors and is seeking a $2 billion penalty. This penalty consists of around $900 million in disgorgement, $200 million in prejudgment interest, and $900 million in penalties, alongside a requested injunction.
In response, Ripple has expressed its objection to the SEC’s demands and vows to continue defending itself against these allegations.
Meanwhile, CoinMarketCap data reveals that XRP is currently valued at $0.5202, experiencing a minimal decline of just 0.48% over the previous day. Despite this slight dip, XRP has remained bullish with a 2.68% increase over the past seven days.