Experience a Sizable Upsurge: Solana and Other Cryptocurrencies Explain the Reasons Behind Their Dramatic Progress
The cryptocurrency market is still sizzling, with prices skyrocketing across various coins this week. However, contrary to popular belief, the major gainers weren't Bitcoin or meme coins, but rather lesser-known altcoins aiming for mainstream acceptance.
As per information from S&P Global Market Intelligence, Solana (SOL, up by 21.2%), XRP (XRP, up by 67.2%), Cardano (ADA, up by 46.4%), and Stellar (XLM, up by an astounding 119.1%) have seen significant increases over the past seven days, as of 12 PM ET on a Friday.
The Role of the SEC in Cryptocurrencies
The recent growth in cryptocurrencies can be largely attributed to the expectation that President-elect Donald Trump will create a more welcoming atmosphere in the U.S. The current plan is to replace the Chair of the Securities and Exchange Commission (SEC), Gary Gensler, which Trump announced he would carry out "from day one."
This change may result in the end of some of the SEC's ongoing legal battles with the crypto industry. Notably, XRP has been a focus of these legal battles, and any regulatory clarity along with a friendlier environment would be beneficial to XRP. Stellar, with ties to XRP's creators and its use cases within the financial sector, is also expected to benefit.
Impact of Momentum and Bitcoin's $100,000 Milestone
Momentum is also playing a significant role in the crypto market, with Bitcoin's impressive surge near the $100,000 mark. This price point is closely monitored by traders, and Bitcoin has been hovering around it for a day now.
Bitcoin is unlike the other altcoins, as it's not primarily designed for practical use, but its influence over the "vibe" of crypto trading is undeniable and pivotal at this moment.
The Potential for Crypto ETFs
The potential for more exchange-traded funds (ETFs) in cryptocurrencies is another factor to consider, given that Bitcoin and Ethereum have already entered the market earlier this year. Already, applications for at least four Solana ETFs have been submitted, and this could be a sign of a surge in altcoin ETFs like XRP, Stellar, and Cardano, which are among the top 20 cryptocurrencies by market cap today.
ETFs can bring new funds to the industry and greatly excite investors for their convenience and accessibility to various funds that cannot directly own crypto. The speculation is that more ETFs will bolster the value of cryptocurrencies.
Is Speculation Overdoing It?
The recent crypto bull market has seen unprecedented prices increases, and anything with potential rule changes or fund flow improvements is being welcomed with open arms. What's concerning, however, is that this upswing is mostly driven by speculation about future changes, but there's no certainty about what we can expect from the new Trump administration.
I think it's clear that the crypto economy is shifting towards stabilizing coins, which are now being transacted at an astonishing rate of trillions of dollars every month. If cryptocurrencies are truly set to disrupt the financial ecosystem, it will primarily occur as a medium of exchange, not speculation, and that's why I'm skeptical about the current surge in prices.
Investors are keeping a close eye on the potential of ETFs in the cryptocurrency market, with applications for Solana ETFs already submitted. This could lead to a surge in altcoin ETFs like XRP, Stellar, and Cardano, which are currently among the top 20 cryptocurrencies by market cap.
In the current context, there's been significant growth in lesser-known altcoins such as Solana, XRP, Cardano, and Stellar. According to S&P Global Market Intelligence, these cryptocurrencies have seen remarkable increases over the past week. (finance, investing, money)
