Altcoins
SEC vs Ripple Case Has Implications for Ethereum Too
Ethereum price has been in a consolidation phase in the past few days as investors wait for the next catalyst. It was trading at $1,200, where it has been in the past few days. This price is close to the important support level at $1,000 and the year-to-date low of $879.
Is Ethereum a security?
A key catalyst for ETH price in 2023 will be the ongoing litigation in the US between Ripple and the Securities and Exchange Commission (SEC). The SEC alleges that the Ripple Labs raised funds without following the due process in 2013. It then says that XRP is not a cryptocurrency like Bitcoin.
Instead, the SEC alleges that XRP is a financial security, which should fall under security laws in the US. Those laws include transparency and regular financial reporting.
If Ripple loses the case, the impact on Ethereum will be significant. For one, Ethereum’s network supports thousands of blockchain projects that are similar to Ripple. Such networks could be classified as securities.
Most importantly, Ethereum’s transition from a proof-of-work (PoW) network into a proof-of-stake (PoS) platform made it a security as well. In a statement, Gary Gensler confirmed that the network was indeed a security because of its staking features.
Staking is a process where investors buy and hold cryptocurrencies with the goal of generating an income. This income comes from the activity in the network. As such, Gensler said that “the investing public is anticipating profits based on the efforts of others.”
What is ETH is a security?
If ETH is declared a security, it means that many American exchanges, including Coinbase will stop offering it in their platforms. Today, many exchanges don’t provide Ripple’s XRP because of the SEC investigation.
The SEC has already come under a lot of pressure following the collapse of FTX and other centralised exchanges like Voyager Digital and Celsius.
Therefore, to prevent this criticism, there is a likelihood that it will be more forceful when regulating the sector. As such, if it wins against Ripple, it could target Ethereum, which is the biggest blockchain in the industry.
Solana price performance in recent times has been remarkable, surpassing Ripple and Binance Coin to become the fourth-largest cryptocurrency by market cap. The SOL price breached the critical level of $100 for the first time since April 2022 over the weekend to imbue optimism among investors. However, the altcoin has corrected by 7%, suggesting that the market is overheated. At the time of writing, the ‘Ethereum killer’ was trading slightly lower at $111.60.
SOL Outlook
Solana price has made a significant recovery over the past few weeks, climbing above the psychological level of $100. The altcoin has been one of the best-performing assets this year, extending its year-to-date gains to more than 1,025%, with more gains recorded in the past month alone. However, even with such growth, analysts have noted that Solana has a bleak chance of topping its ATH of $260.
The reason behind this is the increase in supply relative to its value. In November 2021, when the Solana price hit its all-time high of $260, its total market capitalization was around $78 billion. Despite the value of the crypto asset being less than half of what it was at the top, its market cap is currently hovering near $50 billion.
This has been brought about by the increase in the Solana supply by more than 100 million SOL over the past two years. According to some analysts, for the altcoin to retest $260, its…
Solana price has noted significant gains over the past few weeks, climbing to its highest level since April 2022. The ‘Ethereum Killer’ almost topped the crucial level of $100 on Friday, before pulling back slightly. The asset’s recent surge has catapulted Solana’s total market cap to $39.6 billion, ranking 5th after and above BNB and XRP, respectively. Solana has jumped by more than 22% in the past week and more than 80% in the month to date. At the time of writing, SOL price was trading 0.90% lower at $93.10.
Catalysts Behind SOL’s Rally
Solana price has been on a strong bull run over the past few days, rocketing to its highest level in 20 months as the network benefits from the substantial activity and strong interest in memecoins. The SOL token, the native digital asset of the high-performance blockchain platform Solana, has shown some serious strength over the past few weeks, outperforming all the altcoins in the market.
The recent surge in the Solana price has been linked to heightened on-chain activities on the Solana blockchain. Notably, the ongoing hype for the blockchain’s speedy transactions, cheap fees, and a lottery of meme coin issuances has buoyed SOL’s on-chain activity. Metrics have revealed that Solana has been the strongest draw among on-chain traders, with trading volumes and network fees outperforming Ethereum- the largest altcoin by market cap.
Cited figures provided by DeFi aggregator DeFiLlama…
Solana price has jumped more than 8% over the past week, breaching the important level of $60. At the time of writing, Solana was trading 3% higher at $61.07. The asset’s total market cap has climbed to $25.9 billion over the past week, ranking it the 6th largest cryptocurrency after XRP. The total volume of SOL traded over the last day has declined by 8%.
SOL’s Bullish Cues
Solana’s price has been among the best-performing cryptocurrencies this year amid continuous growth. The “Ethereum killer” has consistently impressed investors throughout the year on the back of a resurgence in bullishness, which saw SOL’s price climb more than 513% in the year to date. Institutional investors have also shared the bullish sentiment, making Solana their most preferred altcoin.
In the week ending November 24, Solana recorded inflows worth nearly $3.5 million, significantly more than the other altcoins’ inflows combined. The asset’s monthly inflows were higher at $40.2 million, lower than Ethereum’s $99.6 million inflows in the same period. Other altcoins, including Litecoin and Ethereum, noted significant outflows, making Solana nearly half of the home for DeFi. This implies that when it comes to institutions, Solana is currently the best-performing altcoin with the potential of a long-term rally much higher than other digital assets.
Notably, the Solana DeFi ecosystem accomplished a significant milestone earlier this week. Its Total Value Locked (TVL) hit a new yearly peak of over $655 million,…
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