The cryptocurrency market is undergoing a significant transformation, with altcoins regaining momentum following the huge legal win for Ripple.
The recent favorable ruling in the Securities and Exchange Commission (SEC) case has revitalized the altcoin space and instilled confidence among investors.
As a result, Bitcoin’s dominance, which once held a towering position in the market, is now experiencing a significant decline.
Ripple Win Gives Altcoins a Boost
The long-awaited verdict in the SEC’s lawsuit against Ripple Labs has had a profound impact on the cryptocurrency landscape.
The SEC had accused Ripple of conducting an unregistered securities offering through its native token, $XRP, in 2020.
However, the tables turned in Ripple’s favor when, on July 13th, Judge Analisa Torres issued a favorable ruling in the U.S. District Court for the Southern District of New York.
The court’s judgment clarified that $XRP is not considered a security, particularly in the context of programmatic sales on digital asset exchanges.
Following the positive outcome of the SEC case, there has been an unprecedented resurgence in the altcoin markets. The broader altcoin market has experienced a notable surge in interest, with $XRP leading the way in a recent mini-altcoin rally in the past week.
— Kaiko (@KaikoData) July 24, 2023
Other altcoins like Polygon ($MATIC), Solana ($SOL), and Stellar Lumens ($XLM) have also followed its path.
XRP Kickstarts a New Altcoin Season
The U.S. federal judge’s ruling immediately impacted $XRP, which saw a 62% increase, sparking enthusiastic responses from the “XRP army” on Twitter.
Over the last month, the token’s overall growth reached an impressive 43.24%, solidifying its position as a top-performing altcoin.
The favorable ruling also extended its influence to other altcoins previously classified as securities by the U.S. Securities and Exchange Commission (SEC).
Solana ($SOL) surged by 17% in a single day and a substantial 38.92% increase over the entire month.
Similarly, Cardano ($ADA) maintained steady growth with a monthly gain of 3.60%, while Stellar Lumens (XLM) achieved an impressive 54.43% growth for the month.
Chris Martin, the head of research at Amberdata, underscored the significance of these judgments.
In an interview with Decrypt, he emphasized that the clarity on $ XRP’s status as a non-security marks a crucial step in distinguishing between securities and commodities in the crypto space.
Martin noted that the SEC may need to reevaluate its approach to ongoing cases in light of this ruling, as it could lead to the reclassification of several other tokens as non-securities.
Bitcoin Dominance Crashes
Bitcoin ($BTC) has demonstrated impressive resilience in recent months, reaffirming its dominant position in the crypto market.
A report by Coingecko for Q2 2023, published on July 18th, highlighted Bitcoin’s sustained momentum from Q1 and further growth during Q2.
According to the report, $ BTC’s price surged by 6.9%, rising from $28,517 to $30,481. This significant increase outperformed the overall crypto market cap, which only saw a marginal rise of 0.14%, reaching $1.240 trillion.
An essential milestone in the asset’s journey occurred after BlackRock announced filing for a spot Bitcoin ETF on June 15th. As a result, $BTC achieved a yearly high of $30,694.
However, a recent report by Kaiko Research revealed that Bitcoin’s dominance, representing its relative percentage of the total market capitalization, has dropped by 8% across the 25 largest exchanges this month.
According to the report, Bitcoin’s dominance is at a multi-month low, hitting 27% across major exchanges, a figure not seen since April.
The decline in dominance can be attributed to the surge in altcoins, which gained momentum after Ripple’s partial court victory.
The $XRP token displayed strong investor confidence with an impressive total trading volume of approximately $25 billion since July 13th, sparking an “alt season” celebration among altcoin investors.
However, a Kaiko analyst, Dessislava Ianeva, cautioned against the market optimism of $XRP at this early stage.
The future of Ripple remains uncertain as the SEC intends to contest the recent court decision.
SEC to Contest Ripple Ruling
On July 21st, the Securities and Exchange Commission (SEC) submitted new documents related to its ongoing lawsuit against Terraform Labs and its CEO, Do Kwon.
In the recent documents filed for the Terraform Labs case, the SEC indicated a potential appeal against the Ripple rulings.
SEC Asserts Ripple XRP Case was 'Wrongly Decided', Signals Appeal
— whales-crypto (@MdMonir75635782) July 24, 2023
According to the documents, the SEC argued that despite Ripple’s claims, a significant portion of the ruling supports its arguments.
Furthermore, the regulator asserted that Ripple’s practices are inconsistent with the Howey test, a crucial factor in determining whether certain transactions qualify as securities. As a result, the SEC recommended against following the court’s previous decisions related to Ripple.
Notably, the previous rulings handed down by a federal judge concluded that Ripple did not violate securities laws by offering $XRP to retail investors. However, the judge did find that the company broke the law concerning institutional investors.
The SEC’s decision to appeal is in response to recent filings made by Terraform’s lawyers, who argued that the Ripple rulings bolster their defense and strengthen their request for the dismissal of the lawsuit.
- Court Rules That Ripple (XRP) is Only a Security Sometimes – Here’s What This Means For XRP
- SEC’s Appeal of Ripple Partial Win Won’t Reverse Anything Anytime Soon Says Crypto Lawyer
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