Tokens Highlighted in Binance and Coinbase SEC Lawsuits See Surge in Trading – What’s Going On?
Around two months after the US Securities and Exchange Commission (SEC) filed lawsuits against major exchanges Binance.US and Coinbase, targeting 19 cryptocurrencies that were designated as unregistered securities, the same tokens are showing signs of recovery.
Following the allegations, the combined market value of the 19 tokens dropped by roughly $20 billion, but trading volume for these tokens has later increased, data compiled by CCData showed.
According to the same data, the overall share of crypto trading that the tokens account for has also risen about two percentage points to 13%.
The news was first reported by Bloomberg.
Market cap down, trading volume up
While the total market value of the tokens has decreased by around 20% since the lawsuits were filed, they are still being traded.
The trading increased trading activity has happened despite the tokens being delisted by some platforms, including Robinhood, Bitstamp, and Bakkt.
Commenting to Bloomberg, Kyle Doane, a trader at crypto investment firm Arca, pointed to the recent court ruling in Ripple’s legal case against the SEC as a reason why traders are taking an interest in these securities tokens.
“The tokens that have been named as securities are being traded as a proxy for regulatory clarity. Since the XRP ruling, regulatory clarity has theoretically worsened, resulting in poor price action,” Doane said.
The Ripple case ended with a partial win for the firm, with the judge stating that the XRP token is “not in and of itself” a security.
Higher volatility attracting traders
According to Bloomberg, the tokens’ increased trading volume could be attributed to the potential for higher price volatility compared to the broader market.
Some tokens, such as SOL, the native token of the Solana blockchain, have shown recovery, going up by around 11% from its initial drop of approximately 35%.
On the other hand, tokens like ADA, the native token of the Cardano blockchain, have not fully recovered and are still down about 20% since June 4.
- How Tether Co-Founder William Quigley Views Crypto Regulations in Trump’s Second Term
- Trump Appoints PayPal Veteran David Sacks as ‘White House AI and Crypto Czar’
- XRP Price Prediction: Here’s When Experts Say $1,000 Could Become Reality
- $330M in BTC Laundered Through Monero, XMR Jumps 50%
- SEC Clears ProShares XRP Futures ETFs to Launch on April 30
Best Bitcoin & Crypto Wallet
More Articles
in numbers
