Bitcoin, the leading cryptocurrency in the market, has experienced a significant decline in dominance due to Ripple’s recent legal victory against the United States Securities and Exchange Commission (SEC). This victory has sparked speculation about the return of the “altcoin season,” leading to a surge in altcoin prices.
According to data from Tradingview, Bitcoin dominance fell below the 50% mark, reaching 49.76% during Asian trading on July 14. This decline marked a shift in the market dynamics, as Bitcoin had previously managed to surpass the 50% mark after a two-year dry spell. The rise in dominance was attributed to the anticipation of spot Bitcoin exchange-traded funds (ETFs) from major financial institutions.
The decrease in Bitcoin dominance has fueled speculation among the cryptocurrency community regarding the potential return of the altcoin season. Ripple’s legal victory played a significant role in boosting the price of its native token XRP, which witnessed an impressive 83% surge. XRP momentarily became the fourth-largest cryptocurrency by market capitalization, reaching a peak of $0.866. This surge generated enthusiasm and celebration within the crypto community.
Altcoin Price Surge
The positive momentum in altcoin prices was not limited to XRP alone. Several other altcoins, which have also faced scrutiny by the SEC, experienced double-digit price increases. Ethereum (ETH) witnessed an 8% gain, surpassing the $2,000 mark for the first time in three months. Another notable altcoin, Cardano (ADA), saw a surge of 25%, reaching $0.357. Solana (SOL), deemed a security by the SEC, rose by 34% to reach $29, while Polygon (MATIC) increased by 20% and traded at $0.854. Stellar Lumens (XLM), a payment network developed from the Ripple codebase, also saw its price surge by over 50%.
While the recent rally in altcoin prices is certainly significant, it remains to be seen whether this upward trend is sustainable in the long term. The overall view of the crypto market suggests that it is currently range-bound. At the time of writing, Bitcoin dominance has returned to around 50.11%, just above its 50-day moving average. Bitcoin itself recorded a 3.5% daily gain, reaching a peak of $31,686, underperforming compared to various altcoins.
Ripple’s legal victory against the SEC has had a profound impact on the cryptocurrency market. It has resulted in a decline in Bitcoin dominance and a surge in altcoin prices. While this altcoin rally has generated excitement within the crypto community, the sustainability of this trend remains uncertain. The market continues to exhibit range-bound behavior, posing challenges to the long-term growth of altcoins. As the crypto market evolves, it will be crucial to monitor how the balances of power and dominance between Bitcoin and altcoins shift in response to regulatory developments and market dynamics.