Resilient Recovery: Crypto Tokens Bounce Back Despite SEC Lawsuits
In recent months, 19 cryptocurrencies, including Solana, Cardano, and Binance Coin, experienced a significant drop in their combined market value due to SEC lawsuits against Binance and Coinbase. However, these tokens have unexpectedly seen an increase in trading volumes since mid-June.
Key Points:
- The tokens have shown signs of recovery in trading volumes, with a cumulative trading share increase of about two percentage points.
- Despite their overall market worth diminishing by 20% since the lawsuits, traders are wagering on these tokens due to the lack of regulatory clarity.
- The Solana blockchain’s native currency, SOL, has rallied with a nearly 10% gain, while Cardano’s native token, ADA, has declined about 20%.
- The enhanced trading volume can be attributed to traders’ attraction to potential price volatility compared to the broader crypto market.
- Global exchanges continue to support these “tainted” coins, with US exchanges representing only 10% of total crypto trading volume.
Hot Take: Despite facing regulatory challenges, these crypto tokens have shown resilience and are bouncing back in terms of trading volumes. The lack of regulatory clarity has actually encouraged traders to bet on these tokens, leading to their recovery. While some tokens have recouped their losses, others continue to struggle. The global support for these coins plays a significant role in their sustained trading activity.
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