In a novel development in the XRP ecosystem, Ripple released the Q2 report of 2024, revealing the increasing institutional adoption. However, the report unearthed the platform’s declining transaction activities amidst market volatility.
Ripple’s 2024 Q2 Report
On August 2, 2024, Ripple released its report for the second quarter of 2024, sharing insights on the ecosystem’s performance in Q2. As per the report, Ripple saw a remarkable surge in institutional adoption driven by the launch of Spot Bitcoin ETFs in January 2024. The report acknowledged the ETF launch as a positive sign towards the expansion of the industry.
Dip in Transaction Volume
Despite increased institutional adoption, XRP Ledger (XRPL) has experienced a significant drop in transaction activity in the last quarter. Notably, the drop in transaction volume came amidst the 168% surge in transaction cost to 0.00394 XRP. Compared to the 251.39 million transactions recorded in Q1, Q2 marked a 65.6% decrease to 86.38 million transactions.
Market Volatility Surge
The overall crypto market experienced high volatility, especially driven by macroeconomic factors such as inflation, interest rate expectations, unemployment rates, etc. In addition, the Bitcoin halving, Spot Ether ETF launch, Mt. Gox’s reimbursement, and Germany’s massive Bitcoin sell-off have highly impacted the crypto market. Most of the crypto tokens, not only Bitcoin or XRP, have experienced severe fluctuations. While Bitcoin declined below $60,000 in July, the average daily trading volumes for Bitcoin, Ether, and XRP plummeted by 20% from the previous quarter.
Ripple’s Landmark Victory in 2023
The report reflected Ripple’s landmark victory against the Securities and Exchange Commission (SEC). On July 13, 2023, Judge Analisa Torres ruled in favor of Ripple, claiming that the secondary sale of XRP does not constitute security. While Ripple celebrated the watershed moment on July 13, 2024, the team shared their optimistic view of the lawsuit’s imminent resolution.
