Ripple’s legal victory against the SEC triggers a bull market for altcoins, leading to significant growth in their market activity compared to Bitcoin and Ethereum.
Key Points
- Ripple’s legal win against the SEC triggers a bull market for altcoins, leading to significant growth in their market activity compared to Bitcoin and Ethereum.
- MidCap altcoins, including XRP, surged by 29% after the ruling, outperforming previously SEC-labeled securities like Cardano, Solana, and Polygon.
- Bitcoin remains unaffected by the victory, experiencing a brief rally but retracing to around $30,000, with its market dominance falling below 50%.
A recent report from CryptoQuant suggests that Ripple’s landmark victory in its lawsuit against the U.S. Securities and Exchange Commission (SEC) has triggered a bull market for altcoins. The report highlights substantial growth in altcoin market activity compared to the relatively stagnant Bitcoin and Ethereum markets.
XRP is not a security.
This victory for @Ripple is a win for the entire industry and a step toward regulatory clarity in the U.S.
A huge thank you to @bgarlinghouse, @chrislarsensf, and @s_alderoty for their leadership and the #XRPCommunity for their continued support.
— Ripple (@Ripple) July 13, 2023
CryptoQuant’s data reveals that MidCaps, which include XRP, outperformed other groups of cryptocurrencies with a 29% surge on June 13th. This includes other cryptocurrencies that were previously categorized as securities by the SEC in its lawsuit against Coinbase last month. The movements in the market caps of these coins, including Cardano, Solana, Polygon, and others, are plotted against the market caps of BTC and ETH.
Last week, the summary judgment in the Ripple V. SEC lawsuit ruled that XRP itself is not a security, and sales of the token on secondary markets are not securities transactions. This is the first time a cryptocurrency company has successfully fought off the SEC’s claims that all crypto assets, with the exception of Bitcoin, are securities.
Bitcoin Unaffected
While Bitcoin briefly rallied to $31,700 following the landmark ruling, its price has since retraced to around $30,000 and remains rangebound. The top asset’s market dominance has partially fallen, putting it back below 50%. Bitcoin’s open interest has not been significantly affected, whereas ETH open interest has risen from $2.2 million to $2.7 million since the ruling. The funding rates for XRP have not had a substantial impact on market sentiment.
“We can witness mixed sentiments among derivatives traders as Bitcoin funding is relatively high while Ethereum’s funding rates just turned negative,” wrote CryptoQuant.
Analysts also observed that short-term sentiment among traders remains negative for Bitcoin and Ethereum based on their Taker Buy Sell Ratio. Both ratios are currently below 1, indicating that taker buy volumes exceed taker sell volumes, reflecting bearish attitudes.
Conclusion
Ripple’s victory in the lawsuit against the SEC has had a significant impact on the altcoin market, with MidCaps outperforming other cryptocurrencies. However, Bitcoin has remained relatively unaffected by the ruling, with a retracement in price and ongoing rangebound trading. The short-term sentiment for Bitcoin and Ethereum remains negative, indicating bearish attitudes among traders. It will be interesting to see how the market continues to evolve in the aftermath of this landmark case.
