Bitcoin’s dominance in the cryptocurrency market has experienced a significant decline following Ripple’s recent legal win against the United States Securities and Exchange Commission (SEC). The surge in altcoin prices briefly caused Bitcoin’s market dominance to fall below the 50% mark. On July 14 during Asian trading, Bitcoin dominance reached a low of 49.76%, as reported by Tradingview.
This decline in Bitcoin dominance comes after a period of growth, as just weeks earlier, Bitcoin’s market dominance had finally surpassed the 50% threshold after a two-year dry spell. This achievement occurred amid a wave of applications for spot Bitcoin exchange-traded funds (ETFs) from major financial institutions. For the past 24 days, Bitcoin’s dominance had been hovering around 51% and 52%.
The recent dip in Bitcoin dominance has led to speculation about the return of an “altcoin season.” Ripple’s victory in court significantly boosted the price of its native token, XRP, which skyrocketed by 83% and reached an intraday high of $0.866. This surge briefly propelled XRP to become the fourth-largest cryptocurrency by market capitalization. However, it currently sits in fifth place after a brief competition with Binance Coin (BNB).
The crypto community, celebrating Ripple’s triumph, took note of the decrease in Bitcoin dominance. Several altcoins that had also been accused of being securities by the SEC experienced double-digit surges on July 14. Ethereum (ETH) notably gained 8% and surpassed $2,000 for the first time in three months, while Cardano (ADA) pumped 25% to reach $0.357 at the time of writing. Solana (SOL), another token classified as a security by the SEC, rose by 34% to $29, and Polygon (MATIC) increased by 20% to trade at $0.854. Stellar Lumens (XLM), a payments network created from a fork of the Ripple codebase, also witnessed a surge of over 50% following the news.
However, the sustainability of this altcoin rally remains uncertain, as the longer-term view suggests that crypto markets are currently range-bound. At the time of writing, Bitcoin’s dominance has returned to around 50.11%, slightly above its 50-day moving average. Bitcoin itself experienced a modest daily gain of 3.5%, reaching a peak of $31,686, but was outperformed by its altcoin counterparts.
In conclusion, Ripple’s legal victory against the SEC has triggered a decline in Bitcoin’s market dominance, leading to an increase in the prices of various altcoins. While this altcoin rally has been significant, it remains to be seen if it will be sustainable in the long run as crypto markets continue to remain range-bound. Bitcoin’s dominance currently stands above the 50% mark, and its performance has been overshadowed by the impressive gains of altcoins.
Source link
