- XRPL witnessed a 108% surge in transactions in Q1 2024 due to upgrades and integrations.
- XRPL’s on-chain activity spiked with 251.39 million transactions, doubling from the last quarter of 2023.
- Axelar integration and EasyA’s educational initiatives boosted XRPL’s interoperability and developer engagement.
- Ripple’s transparent XRP holdings and legal updates regarding the SEC lawsuit were addressed in the report.
In the first quarter of 2024, the XRP Ledger recorded 251.39 million on-chain transactions(XRPL), an increase of 108% compared to the previous quarter. According to a report published on May 17, a total of 251.39 million transactions took place on the XRPL during the first quarter of 2024, compared to 121.03 million transactions during the last quarter of 2023.
XRPL Increased On-Chain Activity
This increase can be attributed to several key factors. The first is the launch of the XLS-30 amendment. This amendment introduced a non-custodial automated market maker (AMM) to the XRPL’s decentralized exchange (DEX). The new feature provided on-chain liquidity and trading capabilities for DeFi developers and users.
According to Ripple, “Last quarter, after a vote approving the amendment, XLS-30 went live on the XRP Ledger Mainnet adding a non-custodial automated market maker (AMM) as a native feature to the XRPL’s decentralized exchange (DEX).”
Another factor contributing to the surge is the integration of Axelar with the XRPL. This integration expanded XRPL’s interoperability with over 55 blockchains and enabled developers to execute smart contract calls and deploy decentralized applications cross-chain.
Additionally, Zoniqx announced plans to streamline tokenization of real-world assets using the XRPL. Orchestra Finance also went live on the XRPL Mainnet, further boosting activity. EasyA’s educational initiatives to onboard developers onto the XRPL and its Ethereum Virtual Machine compatible sidechain also contributed. Ripple stated, “EasyA launched educational modules and initiatives to onboard its community of over 750,000 developers onto the XRPL and its Ethereum Virtual Machine compatible sidechain.”
Technical Upgrades and Integrations Driving XRPL Transactions
Several technical upgrades and integrations facilitated the rise in transactions. First, the XRPL’s AMM functionality went live after a successful bug fix. So, this feature aggregates order books and liquidity pools at a protocol layer, ensuring optimal price execution. “Following thorough testing, the AMM bug fix was released and successfully integrated into the Mainnet as of April 11,” Ripple noted.
Furthermore, the DEX’s auto-bridging feature uses XRP as a native currency to facilitate trades between assets on the XRPL. Thus, this feature, combined with the new AMM functionality, increased the available trading offers and liquidity access.
These technical enhancements have made the XRPL more efficient and attractive for users. They have lowered transaction costs and improved trading routes across assets. Last quarter, the average cost per transaction decreased by 45%. Despite the increased transactions, there was no network congestion.
Ripple’s XRP Holdings
Ripple’s XRP holdings have been transparent. At the end of Q1 2024, Ripple held 4,836,166,156 XRP, down from 5,077,658,695 XRP at the beginning of the quarter. The amount of XRP in on-ledger escrow lockups was 40,100,000,005 at the end of Q1 2024, down from 40,700,000,005 at the start.
Market Activity
Futhermore, the increase in on-chain transactions coincides with high XRP trading activity. XRP spot volumes reached $865 million, which is a 40% increase from the previous quarter. More so, the daily average XRP derivatives open interest was $500 million, up from $460 million in Q4 2023.
“XRP spot volumes (Average Daily Volumes) surged to $865M in Q1 ‘24, representing a 40% increase from Q4 ‘23,” Ripple reported. “Daily average XRP derivatives open interest was $500M in Q1 ‘24 vs. $460M in Q4 ‘23.”
Legal Updates
The report also looked into the ongoing lawsuit against the United States Securities and Exchange Commission (SEC), which SEC filed in 2020. So, the SEC requested remedies against Ripple for its past institutional sales of XRP. The request includes approximately $2 billion, comprising around $900 million in disgorgement and about $200 million in prejudgment interest. However, On April 22, Ripple opposed this request, arguing that the SEC has no right to demand disgorgement or interest unless they can prove someone was harmed.
“In terms of next steps, both parties will wait for the Judge to determine the final remedies – likely in the coming months,” Ripple stated.
“Ripple remains confident that the Judge will approach the remedies phase fairly.” It added.
Conclusion
The 108% increase in XRPL on-chain transactions in Q1 2024 is a clear sign of the growing adoption and activity on the XRP Ledger. The combination of technical upgrades, strategic integrations, and increased trading activity has driven the XRPL ecosystem forward.
More so, Ripple’s active communication and transparency have fostered trust in the industry. The ongoing regulatory developments will likely shape the future of the XRPL and the broader crypto market.
The information provided in this article is for informational purposes only and should not be considered financial advice. The article does not offer sufficient information to make investment decisions, nor does it constitute an offer, recommendation, or solicitation to buy or sell any financial instrument. The content is opinion of the author and does not reflect any view or suggestion or any kind of advise from CryptoNewsBytes.com. The author declares he does not hold any of the above mentioned tokens or received any incentive from the company.
