XRP Spot Volumes Up 40%, Ledger Transactions Rise More Than 100%, But Will SEC Win Wipe These Out?

• XRP spot volumes surged based on Ripple’s Q1 Markets Report. 
• Decentralized exchange volumes rose as the broader market showed recovery.
• The Ripple-SEC lawsuit is expected to decide the course of the token in the coming months.

The latest XRP Markets Report from Ripple underlines that the token had a strong quarter in Q1 2024. With spot volumes surging by 40% and daily average XRP derivatives open interest rising to $500m, the report finds Ripple’s market activity aligned with broader market strength.

The SEC-Ripple lawsuit awaits final judgment on remedies briefing. A victory for the the securities’ regulator could mean severe financial repercussions for Ripple. 

XRP’s Strong Q1

Ripple’s quarterly markets report finds  that the token’s market performance was positive in correlation with overall market trends. Decentralized exchange weekly volumes also increased to $40b, marking a 100% increase over Q4 2023.

On-chain transactions surged by 108% compared to the previous quarter, while the average cost per transaction decreased by 45% based on the report. The decrease suggests improved network efficiency, with no congestion reported during the quarter. These findings underlined the ongoing growth and stability of the XRP network.

Amid the network growth, the SEC’s lawsuit against Ripple saw the regulator requesting around $2b in remedies for historical XRP sales. Ripple contested these claims, advocating for a minimal penalty due to the lack of proven harm. The final judgment on remedies is awaited.

XRP Price and Impact of Lawsuit 

XRP price also fluctuated throughout the first quarter, hitting a low point in mid-February before rising in March. Despite the price increase towards the end of Q1, volatility levels remained high, hovering above 90%, as per the report.

Ripple report also notes that Binance continued to dominate XRP spot exchange volume, with contributions from exchanges like Coinbase, Bitstamp, and Upbit. 

The distribution of XRP volume across exchanges remained consistent, with Binance, Bybit, and Upbit accounting for over 70% of total traded volume. The percentage share of volume traded through fiat pairs declined slightly from the previous quarter, indicating a shift towards USDT trading. 

Should the SEC emerge victorious in the legal battle, Ripple faces more than just financial repercussions. 

A complete SEC victory could cast doubt over Ripple’s operational framework. It can create uncertainty surrounding the valuation and institutional adoption of XRP. Ripple’s potential recourse to appeal might prolong the litigation, extending the already protracted legal battle. 

Regulatory ambiguity could prompt certain cryptocurrency exchanges, particularly those within the US, to consider delisting XRP from their platforms. 

Any major legal loss threatens to impede XRP’s progress as a preferred option for cross-border transactions, potentially undoing the work XRP Ledger has done. However, the ultimate reaction will depend upon the nuances of the final judgment. In the event of a partial victory,  Ripple and XRP might carry on with some of their intrinsic value.

Token price  currently stands at $0.512, representing a 24-hour drop of 1% on CoinGecko .  The 24-hour price range for XRP fluctuated between $0.5068 and $0.5179. Over the past year, it has experienced a growth of a mere 10%. 

SEC Vs Ripple Lawsuit 

The SEC’s ongoing lawsuit against Ripple presents challenges for both XRP and its issuing company.An adverse judgment against Ripple can potentially cast doubt on growth and foster regulatory uncertainty for Ripple. 

As the lawsuit’s outcome remains uncertain, Ripple’s Q1 performance stands out as robust. While the growth trajectory may persist, short-term turbulence is anticipated, potentially mitigated by a partial victory for Ripple. Although escalating repercussions loom if the SEC gains ground in the legal battle.

About the Author

Shraddha Sharma

Shraddha has around five years of experience as a financial journalist, focusing largely on the Asian markets. Starting her career in Mumbai, India, as a news trainee and producer, she quickly found her niche in crypto. She is keen on learning how emerging technologies affect the broader markets and enjoys explaining complex financial ideas in a way that's easy to understand.

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