In a major development for the cryptocurrency market, Bitcoin’s dominance has dropped below 50% following Ripple’s partial victory against the United States Securities and Exchange Commission (SEC). This decline in Bitcoin dominance coincided with an “altcoin season” characterized by double-digit gains among altcoins that are also deemed securities by the SEC.
Bitcoin dominance, which measures the proportion of Bitcoin’s market capitalization compared to the entire crypto market, reached a low of 49.76% during Asian trading on July 14. Just weeks earlier, BTC dominance had surpassed the 50% mark after two years, driven by the anticipation of spot Bitcoin ETFs from prominent financial institutions. Over the past few weeks, Bitcoin dominance had remained around 51% to 52%.
The recent surge in altcoin prices, fueled by Ripple’s court victory, led to significant gains for several cryptocurrencies. XRP, specifically, soared by 83%, reaching an intraday high of $0.866 and briefly becoming the fourth-largest cryptocurrency by market capitalization, before settling into the fifth position behind Binance Coin (BNB).
Altcoins that are also subject to SEC scrutiny experienced notable price increases. Ethereum (ETH) surged by 8% to surpass $2,000 for the first time in three months, while Cardano (ADA) pumped an impressive 25% to reach $0.357 at the time of writing. Solana (SOL), Polygon (MATIC), and Stellar Lumens (XLM) also saw substantial gains ranging from 20% to over 50% following the news.
However, it remains uncertain whether this altcoin rally is sustainable, as the broader market still indicates a range-bound trend. At the time of writing, Bitcoin dominance has recovered slightly to around 50.11%, slightly above its 50-day moving average. Bitcoin itself recorded a modest 3.5% daily gain, reaching $31,686 but underperforming compared to the altcoin sector.
The market’s response to Ripple’s victory highlights the impact of regulatory decisions on cryptocurrency prices and market dynamics. As investors consider the implications of this development, it will be essential to monitor whether altcoins can maintain their gains and if Bitcoin dominance continues to fluctuate in the near future.