The altcoin market is currently facing a turbulent period filled with uncertainty. Recent lawsuits filed by U.S. regulators against cryptocurrency exchanges Binance and Coinbase have delivered severe blows to the prices of these alternative cryptocurrencies, excluding bitcoin and ether.
The impact is significant, with more than 50 altcoins, collectively valued at over $100 billion and accounting for approximately 10% of the entire cryptocurrency market, now classified as securities by the SEC watchdog, as reported by CCData. Major players such as Solana, Polygon, and Cardano have witnessed sharp declines ranging from 23% to 32%.
The repercussions of the security classifications imposed by the SEC are anticipated to affect all U.S. crypto exchanges, potentially resulting in the forced removal of various altcoin pairs, as stated by Vetle Lunde, senior analyst at K33 Research. While the acceptance of the SEC’s classification by U.S. courts remains uncertain, the consequences are already being felt in the industry.
Robinhood Markets has announced its decision to delist Solana, Cardano, and Polygon from its platform. Market participants speculate that other exchanges may follow suit, further exacerbating the impact on these altcoins.