- Unending SEC enforcement actions have subdued altcoins.
- The tide may be turning following the ruling in the Ripple case.
- Interest in the class of crypto assets has surged to monthly highs.
Altcoins have been the worst hit in the extended crypto bear market. The pressure on this class of crypto assets has been worsened by the unending barrage of crypto enforcement actions from the United States Securities and Exchange Commission, labeling several popular altcoins, including ADA, MATIC, SOL, and XRP, as unregistered securities.
The tide, however, may now be turning following the summary judgment ruling in the SEC case against Ripple, which stated that XRP was not a security. Following the ruling, data indicates that altcoins are now receiving greater attention.
Altcoin Interest Soars
On Monday, July 24, crypto research firm Kaiko revealed that Altcoin volume dominance had hit a four-month high, signaling a growing interest in the class of crypto assets.
Kaiko explained in a shared report that the rise in altcoin interest was mirrored by a sharp 8% decline in Bitcoin’s dominance following the summary judgment ruling in the Ripple case.
“BTC dominance across the top 25 centralized exchanges is currently at its lowest level since April, at 27%,” the firm stressed.
Kaiko stressed that the surge in altcoin volumes was particularly higher on offshore exchanges, likely due to a spike in South Korean volumes. Still, the firm noted that the growing interest in altcoins on U.S. trading venues suggested that traders were shaking off regulatory fears.
Source: Kaiko
“Overall, with several new tokens launching and a wave of project updates, we could be experiencing the beginnings of a turnaround for altcoins,” the report surmised.
The recent market sentiment shift has also been reflected in digital asset investment flows. Per CoinShares’ report on Monday, July 24, Bitcoin products saw $13 million in outflows, while Ether and XRP products saw $6.6 million and $2.6 million in inflows, respectively.
On the Flipside
- The surge in interest follows recent price rallies, suggesting that some of the activity could be traders chasing profits.
- The SEC has hinted at appealing the ruling in the Ripple case.
Why This Matters
The soaring interest in altcoins following the ruling in the Ripple lawsuit suggests that investors are beginning to shake off fear of SEC enforcement actions.
Read this to learn more about the ruling in the Ripple case:
Breaking: Ripple’s XRP Wins Case Against SEC. Not a Security.
Binance has given insight into its approach to the CFTC lawsuit:
Binance, CZ, Intend to Seek Dismissal of ‘Complex’ CFTC Lawsuit
Source link: https://dailycoin.com/altcoins-captivate-the-market-as-xrp-win-spurs-4-month-high/
