In a Jan 25 report titled Ripple 2020 Momentum, CEO Brad Garlinghouse expands on the advancements the ecosystem has experienced over the past year.
According to the report, Ripple’s flagship solution RippleNet saw five times more transactions on its platform in 2020 when compared with 2019. RippleNet processed close to three million total transactions, a marked increase.
Platform Growth Coinciding With Industry Growth
The Asian Pacific market was one the biggest adopters of Ripple technology. It saw 80% year-over-year growth in new deals inked, said the report. Many of these Asian Pacific-based platforms have implemented RippleNet to facilitate money transfers, resulting in a regional increase in transactions of 1,700%.
This adoption coincides with the general growth of the cryptocurrency industry, a sector that took off in 2020 and propelled multiple projects to all-time high prices and user growth.
2020 was probably Ripple’s most successful year yet in terms of industry adoption. But recent charges brought against it by the SEC has proved a major hurdle for the company and its owners.
SEC Charges Stifling Ripple’s Growth?
RippleNet may have experienced substantial growth in the last year, but recent charges brought against Ripple Labs and two of its executives has crashed the xrp price. It has also sent the entire Ripple community into a frenzy.
The SEC alleges that xrp is not a commodity like bitcoin or ethereum but is a security. This has resulted in charges against the parties for the unlicensed sale of securities.
The SEC alleges that Ripple sold billions of dollars of unlicensed securities to fund its operations and for personal gain. The charges appear to have had deeply negative effects on the community.
Although some xrp owners are petitioning the SEC to drop the charges, the market had a swift reaction to the news. Many holders feel these new charges are not in their best interest, considering that Ripple has been operating for over seven years with no previous altercations,
Many cryptocurrency exchanges have delisted xrp or banned users from trading it. Even regulated exchanges and companies implementing RippleNet have reduced services, citing concerns around these charges.
Until these allegations conclude, Ripple will likely continue to struggle legitimizing itself in an industry advancing at breakneck speed.