The XRP Ledger (XRPL) experienced a significant increase in transaction activity and a notable decrease in transaction costs during the first quarter of 2024.
According to Ripple’s Q1 2024 XRP Markets Report, the number of on-chain transactions surged by 108%, rising from 121.03 million in the fourth quarter of 2023 to approximately 251.39 million by the end of Q1 2024. This remarkable growth underscores the increasing adoption and utilization of the XRPL network.
Substantial Reduction in Transaction Cost
The report also highlighted a substantial reduction in the average transaction cost, which nearly halved, dropping by 45% to around $0.000856.
Ripple attributed this decrease to a reset in the network, indicating that no congestion issues were present during the quarter. “The decrease in average cost per transaction indicated a reset and that no network congestion occurred in the quarter,” the report stated.
XRP Trading Volume Remained Stable
In terms of trading volume, the distribution of XRP trading across cryptocurrency exchanges remained stable throughout Q1. Major exchanges such as Binance, Bybit, and Upbit accounted for over 70% of the total traded volume.
However, the proportion of XRP trading volume via fiat pairs decreased from 15% in Q4 2023 to 11% in Q1 2024, with most XRP trading now occurring against Tether (USDT).
Ripple vs. the SEC
The report also provided an update on Ripple’s ongoing legal battle with the U.S. Securities and Exchange Commission (SEC). The SEC filed a lawsuit against Ripple in December 2020, alleging that the company conducted an unregistered securities offering through its sale of XRP.
On April 22, Ripple responded to the SEC’s request for $2 billion in remedies, disputing the claim. Ripple argued that the law does not permit the SEC to demand disgorgement or interest on disgorgement unless it can prove actual harm.
Ripple Navigates Challenges
Looking ahead, Ripple stated, “Both parties will wait for the Judge to make a determination on the final remedies – likely in the coming months. Ripple remains confident that the Judge will approach the remedies phase fairly.”
As Ripple navigates its legal challenges, the growth in XRPL transaction activity and the reduction in transaction costs reflect the network’s resilience and continued expansion. The developments in Q1 2024 signal positive momentum for Ripple and the broader XRP ecosystem.
