The recent victory of Ripple in its lawsuit against the U.S. Securities and Exchange Commission (SEC) has sparked a bull market for neighboring altcoins, according to a report from CryptoQuant. The crypto market intelligence firm reveals a surge in altcoin market activity over the past week, in contrast to the relatively stagnant Bitcoin (BTC) and Ethereum (ETH) markets.
Analyzing price performance based on market capitalization, CryptoQuant’s statistics uncover that MidCaps, which include XRP, have outperformed other groups of cryptocurrencies. On June 13th, MidCaps experienced a staggering 29% increase. This growth encompasses other cryptocurrencies that were previously classified as securities by the SEC in its lawsuit against Coinbase last month. In comparison to BTC and ETH, the market caps of these coins, such as Cardano (ADA), Solana (SOL), and Polygon (MATIC), showcase a significant rise.
The Ripple V. SEC lawsuit concluded on July 13th with a summary judgment that declared XRP itself is not a security, and the sale of the token on secondary markets does not qualify as securities transactions. This ruling is groundbreaking as it marks the first time a cryptocurrency company has successfully defended against the SEC’s claims that all crypto assets, excluding Bitcoin, are securities.
Despite a brief rally to $31,700 following the landmark ruling, Bitcoin’s price has retraced to around $30,000 and remains rangebound. Consequently, the dominance of the top asset in the market has slightly declined, falling below 50%. Notably, Bitcoin’s open interest has not been adversely affected, while ETH’s open interest has significantly increased since the ruling.
However, when examining funding rates, it appears that XRP has had minimal impact on market sentiment. CryptoQuant observes, “We can observe mixed sentiments among derivatives traders as Bitcoin funding is relatively high while Ethereum’s funding rates just turned negative.” Further analysis reveals that short-term sentiment among traders remains negative when assessing the Taker Buy Sell Ratio for Bitcoin and Ethereum, indicating bearish attitudes.
Ripple’s legal victory against the SEC not only provides clarity on the status of XRP but also has a ripple effect on the altcoin market. The substantial growth in altcoin market activity, particularly among MidCaps, indicates renewed investor interest and confidence in these alternative cryptocurrencies.
As market dynamics continue to shift, it will be intriguing to observe how altcoins perform in the coming weeks. With the SEC’s classification of XRP as a non-security, other altcoins previously considered in the same category may also experience increased demand. However, it remains crucial for investors to conduct thorough research and exercise caution when navigating the ever-changing crypto landscape.
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