Bullish Ripple Ruling May Have Triggered Altcoin Season: CryptoQuant Analysis

According to a recent report from CryptoQuant, Ripple’s historic victory in its lawsuit against the US Securities and Exchange Commission (SEC) may have ignited a bullish market for neighboring altcoins.

The crypto market intelligence firm has provided a series of statistics that show relative stability within the Bitcoin (BTC) and Ethereum (ETH) markets versus an increase in altcoin market activity over the past week.

return of alt season

When analyzing price performance based on market capitalization, data from CryptoQuant shows that midcaps, which include XRP, outperformed other groups of cryptocurrencies, rising 29% on June 13.

This includes other cryptocurrencies that were previously classified as securities by the SEC in its lawsuit against Coinbase last month. The market cap movement of such coins, including Cardano (ADA), Solana (SOL), Polygon (MATIC), and others, is plotted against BTC and ETH in the chart below.

The summary judgment in the Ripple v. SEC lawsuit, received on July 13, ruled that XRP itself is not a security, nor are token sales on secondary market securities transactions.

This is the first time that a cryptocurrency company has successfully contested the SEC’s claims in a legal case that all crypto assets other than bitcoin are securities.

bitcoin unaffected

Although bitcoin briefly soared to $31,700 after the historic decision, it has since recovered to ~$30,000 and remains range-bound.

According to TradingView, the market dominance of the top asset has partially slipped, falling below 50%, as it failed to sustain higher price levels.

Bitcoin open interest was also unaffected, despite ETH open interest increasing from $2.2 million to $2.7 million since that time. In terms of funding rate, XRP has not affected the market sentiment to a great extent.

“We may see mixed sentiments among derivatives traders as bitcoin funding remains relatively high while Ethereum funding rates turn negative,” CryptoQuant wrote.

Finally, the analyst noted that short-term sentiment among traders remains negative when looking at the Taker Buy/Sell ratio for Bitcoin and Ethereum – a measure of buying and selling pressure for each asset. Both crypto ratios are currently < 1, which means that the buying volume of takers is greater than the selling volume of takers, indicating a bearish trend.