Despite a marginal downturn in the creation of new wallets, the XRP Ledger has experienced a remarkable uptick in adoption, as revealed in Ripple Labs Inc.'s recently published Q1 ecosystem performance report. This comprehensive update not only sheds light on Ripple's ongoing legal tussle with the SEC but also illuminates noteworthy developments in on-chain activity within the XRP ecosystem.

The report underscores a staggering 108% surge in transactions conducted on the XRP Ledger protocol, signaling a burgeoning influx of both applications and users gravitating towards its decentralized framework. This surge in transactional volume is mirrored by a doubling of transaction fees, indicative of heightened activity within the ledger. Furthermore, the dollar volume transacted on the XRP Ledger's decentralized exchange (DEX) has seen a notable uptick of 5%, further cementing its position as a pivotal player in the broader cryptocurrency landscape.

However, amidst these encouraging trends, the report also reveals a modest 11% decline in the creation of new wallets. Despite this dip, the average transaction fee denominated in USD has witnessed a significant reduction of 45%, a testament to Ripple's ongoing efforts to streamline and optimize the user experience within the XRP ecosystem.

Turning attention to the legal arena, Ripple remains steadfast in its resolve to contest the allegations leveled against it by the SEC, underscoring its unwavering commitment to defending its position and preserving the integrity of its platform. Despite the legal headwinds, XRP's value remains resilient, with the latest data from CoinMarketCap indicating a valuation of $0.5202, marking a marginal decrease of 0.48% from the previous day but maintaining an overall bullish trajectory, with a commendable 2.68% increase over the past week.

In essence, Ripple's Q1 report paints a picture of resilience and progress within the XRP ecosystem, with burgeoning adoption rates and robust on-chain activity offsetting minor setbacks in wallet creation. As the legal saga with the SEC unfolds, Ripple remains steadfast in its commitment to driving innovation and fostering widespread adoption of its groundbreaking technology.