Bitcoin’s dominance in the cryptocurrency market has experienced a significant decline as a result of Ripple’s recent legal victory against the United States Securities and Exchange Commission (SEC). This decline was accompanied by a surge in altcoin prices, temporarily pushing Bitcoin dominance below the 50% mark. According to Tradingview, Bitcoin dominance fell to 49.76% during Asian trading on July 14. Just a few weeks ago, Bitcoin had managed to surpass the 50% mark after a two-year dry spell, thanks to numerous applications for spot Bitcoin exchange-traded funds (ETFs) from major financial institutions. Over the past 24 days, Bitcoin dominance had been fluctuating around 51% and 52%.
The Return of Altcoin Season
The recent decrease in Bitcoin dominance has led to speculation among the cryptocurrency community about the return of “altcoin season.” Ripple’s legal victory played a significant role in boosting the price of its native token XRP, which surged by 83% and briefly became the fourth-largest cryptocurrency by market capitalization, reaching an intraday high of $0.866. Currently, XRP sits in fifth place after a brief competition with Binance Coin (BNB). This surge in XRP’s price was met with enthusiasm and celebration from members of the crypto community.
Several other altcoins that have also been accused of being securities by the SEC experienced double-digit price increases on July 14. Ethereum (ETH) saw an impressive 8% gain, surpassing the $2,000 mark for the first time in three months. Cardano (ADA) experienced an even greater surge of 25%, reaching $0.357 at the time of writing. Solana (SOL), another token deemed a security by the SEC, rose by 34% to reach $29, while Polygon (MATIC) increased by 20% to trade at $0.854. Stellar Lumens (XLM), a payment network launched in 2015 as a fork of the Ripple codebase, saw its price rise by over 50% in response to the news.
The Sustainability of the Altcoin Rally
While the recent rally in altcoin prices is certainly notable, it remains to be seen whether this upward trend is sustainable in the long term. The overall view of the crypto market suggests that it is currently range-bound. At the time of writing, Bitcoin dominance has returned to around 50.11%, just above its 50-day moving average. Bitcoin itself only recorded a 3.5% daily gain, reaching a peak of $31,686, and was outperformed by various altcoins.
In summary, Ripple’s legal victory against the SEC has had a significant impact on the cryptocurrency market, causing a decline in Bitcoin dominance and a surge in altcoin prices. While this altcoin rally has generated excitement within the crypto community, the sustainability of this trend remains uncertain as the market continues to show signs of being range-bound.