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Cardano & Solana Gaining Institutional Excitement After SEC Loss

Last Updated August 2, 2023 4:53 PM
Omar Elorfaly
Last Updated August 2, 2023 4:53 PM

Key Takeaways

  • Altcoins have been on an upwards trend despite SEC scrutiny
  • Are altcoins no longer fearing the SEC?
  • Cardano’s ADA offers a perk that Bitcoin and Ethereum need

Among the many victims of SEC litigation in the crypto world are altcoins. Tokens such as Cardano’s ADA, Solana’s SOL, and Polygon’s MATIC have seen drastic drops in valuation over time. These tokens have been removed from numerous trusted exchanges, such as Revolut, likely due to fear of SEC wrath.

However, these tokens somehow powered through regulatory scrutiny and banishment from major exchanges only to bounce back in value. Perhaps one of the biggest contributing factors to altcoins’ revival is the recent SEC defeat against Ripple, in which the judge presiding over the case ruled that XRP, the company’s native token, is indeed not a security. 

Altcoins Outperform Ethereum

While the SEC has been working day and night to limit the number of tokens allowed for trade on exchanges without being classified as ‘unregistered securities,’ token issuers and exchanges have been working twice as hard to see their businesses grow.

Altcoins such as SOL, ADA, and MATIC had their optimism revived after Ripple’s triumph over the SEC. The results of said revitalized hope can be seen in recent trading trends of these tokens. 

Findings from CoinShares  show the following:

  • “93% of the outflows were from long-Bitcoin investment products, while short-Bitcoin saw its 14th consecutive week of outflows totaling US$3.1m.
  • This suggests investors have been taking profits in recent weeks, with the sentiment for the asset overall remaining supportive.
  • Investors are favoring altcoins (less Ethereum), with inflows last week totaling US$3m, and for the last 8 weeks seeing inflows totaling US$19m.”
Weekly crypto asset trends
Coinshares info shows Altcoins outperforming Ethereum

Among the key findings in CoinShares’ stats is that Cardano (ADA), Solana (SOL), and XRP managed to gather an inflow of  $0.64 million, $0.6 million, and $0.5 million, putting them ahead of SEC-approved tokens, such as Ethereum.

Cardano Wants To Diminish Trade Fees

A recent tweet  by Charles Hoskinson, co-founder of the Cardano blockchain platform, and a co-founder of the Ethereum blockchain platform highlighted the importance of altcoins such as his company’s native token ADA.

Hoskinson quoted a tweet showing the minuscule Cardano blockchain transaction fees. A Twitter user named “Scanlz” announced that they managed to trade 56 assets on the Cardano blockchain while only paying 0.482785 $ADA (0.14 $) in return.

Cardano’s co-founder commented by saying, “It’s almost as if eutxo, native assets, and Plutus are a good idea or something?”

A similar point was recently made by Larry Fink, CEO of BlackRock, the world’s biggest asset manager, who claimed his company aims to democratize crypto by reducing transaction costs. 

“What we’re trying to do with crypto is make it more democratized and make it much cheaper for investors,” said Fink.

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