The XRP community and investors had reason to celebrate as a historic verdict settled the long-standing Ripple Securities and Exchange Commission (SEC) lawsuit in July, confirming that Ripple’s native token is not a security. This landmark decision injected new life into the ecosystem, propelling the digital asset to close the third quarter of 2023 with remarkable gains.
The quarter-end data, as reported by Messari State of XRP Ledger Q3 2023, paints a picture of a resurgence for XRP. The market capitalization of the token soared by 11.9% in the third quarter, bringing the year-to-date increase to an impressive 59.9%. These gains were further boosted by the positive regulatory verdict, which triggered spikes in the token price.
The XRP Ledger also witnessed an astounding surge in decentralized exchange (DEX) volume, up by a staggering 390% in the quarter. The increased trading activity closely followed the SEC’s favorable decision.
Looking ahead to the fourth quarter, XRPL is poised for further advancements. Notable developments include the introduction of “Hooks,” a programmability solution, which is now live on the development network and is nearing integration with Xahau Network. Xahau Network, built on Hooks, released its whitepaper in Q3, hinting at potential innovations.
Additionally, XRPL is making strides in the world of DeFi with proposed amendments for Automated Market Makers (AMM) and Clawback functions on the mainnet. The ecosystem also continues its focus on enhancing interoperability with the Ethereum Virtual Machine (EVM) sidechain and the XLS-38d bridge.
XRP’s Strong Position
Regarding financial analysis, Ripple’s native token is currently ranked as the fifth-largest cryptocurrency by market capitalization, with a valuation of $27.8 billion. The circulating market cap surged by 11.9% during the third quarter, erasing any setbacks experienced in the previous quarter.
Unlike other blockchain networks, XRPL’s validators do not receive rewards or transaction fees. Instead, they are incentivized to support decentralization. The network relies on the Proof-of-Association (PoA) consensus algorithm, emphasizing trust between nodes.
The favorable verdict in July prompted a substantial price increase for the token, with its value surging over 70%. Major cryptocurrency exchanges, such as Coinbase and Kraken, swiftly relisted XRP following the decision. The SEC’s motion to appeal was subsequently denied.
In network analysis, XRPL experienced a decrease in average daily transactions and active addresses in the second quarter. However, the number of accounts continued to rise, and the number of deleted addresses decreased significantly, returning to typical levels. Unique destination tags on XRPL addresses can skew the count of daily active addresses, often due to centralized exchanges.
The ecosystem also introduced changes in transaction types, with Payment transactions leading the way. Other transaction types, such as OfferCreate and TrustSet, experienced declines. Nevertheless, the network continues to build on its strengths and expand its ecosystem to support a wide range of assets and use cases.
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