Solana (SOL) & Polygon Influenced by SEC’s Ruling on Kraken Suit
As the SEC declared certain major altcoins like Solana (SOL) and Polygon to be securities during the filings related to its lawsuit against Kraken, cryptocurrency prices took a nosedive. SOL’s price fell over 8%, dropping below $60, while MATIC likewise went down by nearly 7% to under $0.80. This unexpected classification essentially implies that the SEC plans to impose strict regulations typically reserved for stocks and bonds on these assets, potentially constricting their future development and adoption if compliance with stringent reporting regulations is required.
This isn’t the first time the SEC has labeled Solana (SOL) and Polygon as securities. In a previous lawsuit filed against cryptocurrency exchange Binance in June, the SEC argued that SOL, MATIC, and BNB were securities. Regardless of the SEC’s characterization, both the Solana (SOL) Foundation and Polygon Labs disagreed. Still, this classification has profound implications for the broader cryptocurrency industry, setting a whole lot of precedent for how other coins and tokens may be classified in the future.
Alternative Altcoins to Consider Amidst the Turmoil
If you’re looking for alternative altcoins amidst the turmoil, there are 3 leading options to consider:
1. Bitcoin (BTC) ETF Token (BTCETF)
Bitcoin (BTC) ETF Token (BTCETF) allows traders to speculate directly on the market impacts of a probable spot Bitcoin (BTC) ETF being launched in the United States. The token features a deflationary mechanism with 5% of the initial supply to be burned upon key ETF approval milestones being reached. There is likewise a built-in sell tax that decreases based on the achievement of real-world ETF milestones. Investors have shown strong interest in the project, ranking it first on CoinSniper.net and contributing over $1.2 Million during the presale.
2. Avalanche (AVAX) (AVAX)
Avalanche (AVAX) is an incredibly fast blockchain that competes with Ethereum (ETH) and has the probable to process 4,500 transactions per Second. Recently, JPMorgan tested tokenized portfolios on Avalanche (AVAX) and other chains, indicating growing institutional interest as the network’s activity has surged. With its value up over 140% since the previous 30 days, positive fundamental and technical factors have aligned, making Avalanche (AVAX) an exciting altcoin to watch.
3. Blur (BLUR)
Blur (BLUR) is an under-the-radar project offering a unique NFT marketplace and lending protocol for professional traders. Regardless of the broader NFT hype decline, consistent transaction volume data and recent positive price action have made BLUR an intriguing alternative to Solana (SOL) and MATIC, especially due to its early stage of adoption.
Hot Take: Weighing Your Options Amid the SEC’s Declaration
Although while Solana (SOL) and Polygon face uncertainty due to the SEC’s classification, there are alternative altcoins to consider. Bitcoin (BTC) ETF Token (BTCETF) directly targets the capacity impact of a spot Bitcoin (BTC) ETF in the United States, while Avalanche (AVAX) offers a fast blockchain and interoperability advantages. Blur (BLUR) presents unique use cases in its early stage of adoption. As the situation evolves, considering these alternatives may help hedge against the capacity repercussions of the SEC’s ruling.
Owen Patter is a distinguished crypto analyst, accomplished researcher, and skilled editor, leaving a notable imprint on the cryptocurrency landscape. As a proficient crypto analyst and researcher, Owen delves into the intricate realms of digital assets, offering insights that resonate with a diverse audience. His analytical acuity is harmoniously paired with adept editorial skills, allowing him to transform complex crypto information into easily comprehensible content.