Ripple Labs has released its fourth-quarter earnings report, revealing its confidence in the ongoing SEC lawsuit regarding the status of XRP. Despite the two-year legal battle, the report highlights Ripple’s pride in its defense and states that the company feels more optimistic about the outcome than ever before.
The company is hopeful to see a ruling before 2023 runs out, although it recognizes that the timing of the decision is in the judge’s hands.
The report also criticizes the SEC for its approach to regulation, claiming that “regulation by enforcement” is hindering the growth of the crypto industry in the United States. Ripple calls for greater regulatory clarity to allow for sustainable and scalable growth in the industry.
“Regulatory clarity is required for the industry to grow sustainably and scalably—something Ripple has long advocated for,” the report says.
Ripple’s Q4 report looks bearish
Despite the bullish outlook in the report, the Q4 2022 numbers show a decline in XRP’s spot markets, with average daily volumes (ADVs) falling from $1.1 billion in Q1 2022 to roughly $700 million. This was a decline of 13% from Q3 2022 and 64% from Q4 2021.
The XRP cryptocurrency was impacted by market turbulence in 2022. During Q4 of that year, its price dropped by 30% and its trading volume decreased by 40%. Currently, XRP is trading at $0.404, showing a 1.21% increase in the last 24 hours, according to Coinmarketcap.
Its 24-hour trading volume is $916,424,277, which represents a 14.31% decrease from the previous day. Despite this, XRP still ranks as the sixth-largest coin by market cap on CoinMarketCap.
Meanwhile, the on-chain activity on the XRPL stayed relatively buoyant, even when the global market suffered. Ripple maintains that the number of transactions on the ledger increased by over three million, spurred primarily by NFT activity once the XLS-20 amendment passed on November 2, 2022.
Optimism for Ripple and the SEC’s case involving XRP rose after the SEC ruled that the sale of LBRY Credits (LBC) tokens, which face similar issues as XRP, on the secondary market did not violate unregistered securities laws.
This announcement led to a surge in the price of LBC, increasing by more than 100% and reaching a high of over 280%. Ripple supporters believe a similar outcome will occur for XRP once the case is resolved in their favor.