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- 1 Dozens of crypto tokens declined in value following the SEC’s action against Coinbase.
- 2 Cardano slipped 24.88% in weekly trading sessions and 23.52% in monthly sessions.
Following the SEC’s drastic actions against crypto exchanges, the market experienced a massive decline, and the value of tokens such as Solana (SOL), Cardano(ADA), Shiba Inu (SHIB), and Dogecoin(DOGE) fell by over 15% in weekly trading sessions.
A significant decline in trading volume and market capitalization was also witnessed in weekly sessions. Solana slipped 28.05% in seven days, and its trading volume declined by more than 27% in the last trading session.
In the monthly trading session, SOL’s lowest trading price was $13.38, and the highest trading price was $22.28. At press time, the token was trading at $15.53 with a daily trading volume of $435 million. As per CoinMarketCap, SOL prices declined by 94.03% compared to their all-time high.
The falling price might be a reaction to Robinhood’s announcement that SOL will be delisted from the platform on June 27, 2023. Since the delisting announcement, there has been mayhem in most crypto price charts.
The moving average of SOL suggests a strong sell, but the oscillators indicate neutrality. The market capitalization of the token is currently $6.21 billion.
In the lawsuit filed against Coinbase, the Securities and Exchange Commission (SEC) labeled SOL, the native token of the Solana blockchain, as a security. However, the Solana Foundation disagreed on labeling the token as a security.
The Solana Foundation disagrees with the characterization of SOL as a security. We welcome the continued engagement of policymakers as constructive partners on regulation to achieve legal clarity on these issues for the thousands of entrepreneurs across the U.S. building in the…
— Solana Foundation (@SolanaFndn) June 10, 2023
Relatedly, Cardano (ADA) is rapidly losing its position. In the last six months, the trading prices of ADA have shown a remarkable decline. ADA trading prices slipped 24.88% in weekly trading sessions and 23.52% in monthly sessions.
Cardano’s falling trading volume and prices is reflective of investors and enthusiasts losing their interest in ADA. CoinMarketCap data shows that ADA’s market capitalization surged over 5% and reached $10 billion.
Like Solana, the SEC termed Cardano as a security, but its developers denied these claims. The SEC has labeled 67 cryptocurrencies as securities, which will have severe ramifications for the industry.
“The Cardano Foundation disagrees with the recent qualification of ADA as a security under US law. We look forward to the continued engagement with regulators and policymakers to achieve legal clarity and certainty on these matters. – @F_Gregaard as quoted in @FortuneMagazine. https://t.co/ewYso7kWBE
— Cardano Foundation (@Cardano_CF) June 6, 2023
Since the SEC has labeled many tokens and coins as securities, it is likely that they will be tracking every moment of these tokens. This will negatively impact users’ faith in crypto as they are primarily using crypto because of its anonymity features.
Other than tokens, meme-coins also suffered due to the SEC’s actions. Shiba Inu and Dogecoin have faced significant declines in weekly trading sessions. Shiba Inu prices have declined by over 22% in the last seven days. Market capitalization decreased by 1.48%, and intraday trading volume slipped by 27.26%.
The SEC has labeled over 50 cryptocurrencies securities, excluding meme-coins such as Shiba Inu and Dogecoin. However, the reason behind the declining prices of Shiba could be a reflex action caused by the presence of more sellers than buyers.
At press time, Shiba was trading at $0.00000611 with a 24-hour trading volume of $113 million. Regarding trading volume, the meme coin is ranked 28th and 18th as per market capitalization.
Dogecoin, one of the favorite cryptocurrencies of billionaire Elon Musk, suffered a decline of 15.58% in weekly trading sessions. For the past one year, DOGE has been trading under losses, and in the half-yearly trading session, the price fell by more than 32.77%.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
