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It’s an altcoin rally as Bitcoin dominance wears off

In this post:

  • The altcoin market surged after Ripple’s landmark victory over the SEC.
  • Ethereum leads the Altcoin rally, trading above $2,000 for the first time in months, threatening BTC’s market dominance.
  • How long will the altcoin rally last – considering that crypto investors have only focused on one part of the court ruling and left the other out?

The altcoin market boom is back, and crypto investors are ready to expand their portfolios. The Altcoin Market Cap increased considerably yesterday after Ripple won its case against the SEC. As of the time of writing, the Altcoin Market Cap gives a bullish reading. Coins attached to the XRP market surged in double digits, and now the altcoin industry is set to take over Bitcoin’s market dominance.

Altcoin industry takes the market lead

The Ethereum (ETH) price has surpassed $2,000 amid the largest altcoin rally of the year. The second-largest crypto by market cap is currently trading at $2,006 after a daily increase of 7.15 percent. The increase has been rapid, which may be a harbinger of things to come as ETH advances to a new annual high and beyond.

In addition, payments-focused crypto XRP surpassed BNB token to become the fourth-largest digital asset by market capitalization in the globe. At the time of writing, XRP had a market cap of $41.44 billion, with a 66% increase over the previous 24 hours.

The District Court for the Southern District of New York ruled on Thursday that Ripple’s offer and sale of XRP on digital asset exchanges did not constitute offers and sales of investment contracts, as the SEC had claimed.

According to Coinglass data, global volume-weighted perpetual futures funding rates have reached their greatest level since at least December. The open interest-weighted rates have reached their highest level in four months.

Will the altcoin rally last?

The altcoin rally may have just begun, but will it last? The XRP ruling has taken two different stands. However, crypto investors have majorly concentrated on that which favors them.

The District Court for the Southern District of New York ruled on Thursday that Ripple’s offer and sale of XRP on digital asset exchanges did not constitute offers and sales of investment contracts, as the SEC had claimed.

However, the court ruled that Ripple’s direct sale of over $700 million worth of XRP to institutions, hedge funds, and other parties violated federal securities laws. The SEC filed a lawsuit against Ripple in late 2020 for selling unregistered securities after the company sold $1.3 billion in XRP. 

After that, several exchanges delisted XRP as a result of regulatory action, which kept the crypto under duress while the broader market ended the year on a high note.

The first part of the ruling has opened the door for XRP to be relisted on centralized exchanges. Crypto.com has already taken the initiative, and Gemini is looking into the possibility of listing XRP for spot and derivatives trading. In the meantime, the second part of the ruling concluded that XRP is a security. This part has not sunk in the crypto market just yet.

The Court has found Ripple to be in violation of securities laws, specifically in relation to direct sales to institutional investors. As such, XRP is not only deemed a security, but questions have arisen regarding the legality of its offering. In regards to these sales, the Court has confirmed that the law was indeed violated, marking a considerable victory for the Securities and Exchange Commission (SEC) and setting a precedent for its legal actions against other cryptocurrencies.

Crypto market analyst

As potential underwriters, it is essential to note that institutional investors who purchased directly from Ripple may be subject to class-action litigation. This is an important area to monitor, particularly if prominent venture capitalists are involved.

The price increase and favorable positioning in the perpetual futures market indicate that traders have not yet focused on the second portion of the ruling. Similar to conventional futures contracts, perpetual futures have no expiration or settlement date.

Polygon’s price soars

On July 14, Polygon witnessed a major price increase as a result of several key factors. These include a recent favorable court judgment for XRP, greater activity of decentralized applications (Dapps) on the Polygon Network, and the long-awaited release of Polygon 2.0.

MATIC experienced a surprising 24% gain in just 12 hours, boosting its price to $0.89 on July 13, reaching its highest level in five weeks. Despite the early enthusiasm, the token maintained a daily rise of 15%, showing significant demand from traders and investors.

According to data from DappRadar, the number of active Dapps on Polygon has surged by 47% in the past 30 days. As the altcoin season kickstarts, investors remain hopeful that no more regulatory fog will hinder the market growth.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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