Altcoins Rally as Ripple Win Spurs 4-Month High
• Altcoins have been the worst hit in the extended crypto bear market due to unending enforcement actions from the US Securities and Exchange Commission.
• Following the summary judgment ruling in the SEC case against Ripple, which stated that XRP was not a security, interest in altcoins has surged to monthly highs.
• Data indicates that altcoin volume dominance has hit a four-month high, with Bitcoin’s dominance declining by 8%.
Unending Enforcement Actions Weigh on Altcoins
The prolonged crypto bear market has taken its toll on altcoins, with several popular digital assets including ADA, MATIC, SOL, and XRP being labeled as unregistered securities by the United States Securities and Exchange Commission (SEC). As such, this class of crypto assets has seen its value diminished considerably since then.
Ruling In Ripple Case Turns Tide For Altcoins
However, things may be starting to turn around following a favorable ruling in the SEC case against Ripple. The summary judgment stated that XRP was not a security. This news appears to have catalyzed an increase in altcoin interest across centralized exchanges worldwide. According to data from crypto research firm Kaiko, altcoin volume dominance had hit a four-month high on July 24th when Bitcoin’s dominance declined by 8%. In addition, there were more inflows into Ether and XRP products than outflows from Bitcoin products per CoinShares‘ report on Monday.
South Korean Interest Propels Altcoin Volumes Higher
Kaiko noted that offshore exchanges experienced an especially significant surge in altcoin volumes likely due to higher South Korean activity. Even so, U.S.-based trading venues saw higher altcoin interest as well suggesting that traders were shaking off regulatory fears for these cryptosassets.
In conclusion it is clear that investor sentiment towards altcoins is improving thanks largely to the recent ruling in favor of Ripple in its battle with the SEC over whether or not XRP is classified as a security or not. With this newfound confidence and renewed attention being given to these tokens we could very well be seeing the beginning of an upturn for altcoins going forwards.