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ADA, SOL and MATIC Break Free From SEC-Induced FUD: Details

Tue, 08/15/2023 - 13:17
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Godfrey Benjamin
The 19 crypto assets labeled as securities by SEC have seen revived growth in trading volume
ADA, SOL and MATIC Break Free From SEC-Induced FUD: Details
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There has been a broad-based recovery in the trading volume of the trio of Cardano (ADA), Solana (SOL) and Polygon (MATIC), as well as the other 16 tokens labeled by the United States Securities and Exchange Commission (SEC) as investment contracts. As first noted by Bloomberg, the overall share of trading volume in the crypto market by these coins has jumped by two percentage points to 13%.

The SEC indictment notably impacted these assets in no small measure, with as much as $20 billion erased from their combined market valuation. While the price growth of these tokens has not really recorded a very major upshoot since the negative labeling, they have largely maintained a resilience that lends promise across the board.

Per the Bloomberg report, the delisting of these tokens on mainstream brokerage platforms like Robinhood and eToro has had a limited impact on the trading volumes of these assets. The reasons attributed are not disconnected from the positive XRP ruling from Judge Analisa Torres, who noted that the coin is not in itself an investment contract.

Coinbase Might Delist Cardano (ADA) and Other Tokens, CEO Says

With XRP currently in the clear, investors are now beginning to get more confident that the precedent may as well clear these digital currencies they bought on secondary markets.

Foreign Impact on ADA, SOL and MATIC

One of the major factors that also impacted the recovery of these indicted tokens is the fact that most maintained their embrace on foreign trading platforms.

Solana Foundation Stands Against SEC's SOL Security Classification

Notably, trading platforms operating from the U.S. where the SEC verdict impacts users account for just about 10% of the total crypto trading volume. With the ability of these coins to sustain their foothold offshore, their recovery has been considered inherently justified.

The broader market now accounts for the last straw that can finally lift these tokens from their year-to-date (YTD) lows, a trend that is hard to predict considering the many complexities in the industry at this time.

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About the author

Godfrey Benjamin is an experienced crypto journalist whose main goal is to educate everyone around him about the prospects of Web 3.0. His love for crypto was birthed when, as a former banker, he discovered the obvious advantages of decentralized money over traditional payments. With his vast experience covering various aspects of Web3, Godfrey's articles has been featured on, Cryptonews and Coingape, among others.