Ripple’s Q4 2023 Report Reveals Stellar Market Performance of XRP Price Following SEC Ruling
The XRP Ledger (XRPL) has established itself as a seasoned player in the ever-changing world of cryptocurrencies, making cross-currency and cross-border payments a breeze for over a decade.
After a lengthy legal battle between Ripple and the U.S. Securities and Exchange Commission, a major milestone was reached. The court ruled that XRP is not an investment contract, leading to a surge in market enthusiasm. As a result, XRP’s price skyrocketed by over 70% to reach $0.82 in July 2023. Reputable exchanges such as Coinbase and Kraken quickly relisted XRP, signaling renewed confidence in this digital asset.
According to a report by Messari, Ripple’s XRP experienced remarkable growth, with a 21% increase in market cap quarter over quarter and an astonishing 97% year-over-year growth. Despite lagging behind the broader crypto market with a 19.3% price increase quarter over quarter, XRP remains the sixth-largest cryptocurrency by market capitalization, totaling $33.7 billion. Network activity presented a mixed picture, with a 31.3% decrease in active addresses quarter over quarter, but a significant 22.7% increase in transactions.
One unique aspect of XRP’s financial model is the burning of transaction fees on the XRPL, which creates deflationary pressure on the total supply. In December, there was a surge in Payments due to inscription-related activity, further emphasizing this unique feature.
The XRPL ecosystem saw the emergence of Sologenic’s SOLO token, which holds 45% of the total market cap of Issued Currencies, making it a dominant force. Non-Fungible Tokens (NFTs), an integral part of the XRPL’s core protocol, experienced a remarkable 491% increase in NFT mints quarter over quarter. Projects like XRP Family NFT and major corporations like Ducati Motorcycles utilized the XRPL for digital collectibles, showcasing the platform’s versatility.
The report highlights the XRPL’s commitment to minimizing complexity in Layer 1 while maximizing programmability through sidechains. Coreum, an enterprise-grade sidechain, focused on security tokenization and interoperability, while the EVM sidechain proposal aimed to introduce smart contracts to the XRPL ecosystem. The integration of Hooks, enabling smart contract functionalities, and ongoing developments like Xahau demonstrate the XRPL’s dedication to continuous innovation.
Ripple has played a crucial role in utilizing the XRPL for institutional and governmental purposes, particularly in Central Bank Digital Currency (CBDC) initiatives. The announcement of the Ripple CBDC Innovative program and collaboration with the Central Bank of Colombia further underscore XRPL’s relevance in shaping the future of digital currencies.
Messari’s comprehensive report details the significant developments and growth of the XRPL ecosystem in Q4 2023. From regulatory victories to surges in NFT mints and innovative sidechain projects, the XRPL ecosystem has demonstrated resilience and adaptability.
Tags: Ripple (XRP)