Ripple Labs Inc. has released its latest ecosystem performance report, revealing key on-chain activities for the first quarter of 2024. The report highlights significant growth in transactions on the XRP Ledger (XRPL) protocol, which saw total transactions soar to 251,397,881, marking a 108% increase from the 121,031,713 transactions recorded in Q4 2023. This surge is attributed to the growth in new applications and users on the platform.

The report also notes a significant rise in the total XRP burned for transaction fees, which doubled from 317,271 in Q4 2023 to 636,184 in Q1 2024, reflecting a 101% increase. Additionally, the volume of decentralized exchange (DEX) transactions in dollar terms rose by 5%, reaching $57,618,270 compared to $54,907,170 in the previous quarter.

Despite these positive developments, the XRP Ledger's performance was not without its challenges. The number of new wallets created on the protocol dropped by 11%, falling from 208,522 in Q4 2023 to 185,809 in Q1 2024. Moreover, the average cost per transaction in USD decreased by 45% to $0.000856, indicating lower overall transaction costs on the ledger.

Ripple Labs also provided an update on its ongoing legal battle with the U.S. Securities and Exchange Commission (SEC). The SEC is seeking a $2 billion fine from Ripple for alleged violations of federal securities laws related to the sale of XRP to institutional investors. This includes approximately $900 million in disgorgement, $200 million in prejudgment interest, and $900 million in penalties. The SEC is also requesting an injunction against Ripple.

Ripple has filed its opposition to the SEC’s demands, and the case now awaits a final verdict on remedies from the judge, a process that could take several months. This legal uncertainty continues to cast a shadow over the otherwise impressive performance metrics of the XRP Ledger.

Overall, while the XRP Ledger has demonstrated strong transaction growth and increased DEX volume, it faces ongoing challenges in user adoption and regulatory scrutiny. The outcome of the SEC lawsuit remains a significant factor in the future trajectory of the XRP ecosystem.