Time for a crypto summer? The Ripple case sets a precedent for altcoins. BTC dominance is falling

The Ripple Labs case may set a precedent for the entire cryptocurrency world, because more than 2 years ago the SEC called XRP a security, just as recently, in the Coinbase lawsuit, it named dozens of altcoins. It was at the beginning of June, which translated into a strong drop in token prices, which seem to be gaining since yesterday.

Ripple Labs won a victory in U.S. District Court for the Southern District of New York on July 13, when Judge Analisa Torres ruled in part in favor of the company in a case brought by the SEC (The SEC filed a lawsuit in December 2020, claiming the company had sold XRP as an unregistered security.)

According to documents filed on July 13, Judge Torres issued a summary judgment in favor of Ripple Labs, ruling that the XRP token is not a security, but only in relation to the programmatic sale on digital asset exchanges.

Ripple precedent and altcoin relief

This may mean that after the US Securities and Exchange Commission (SEC) recognized about 61 cryptocurrencies as securities. Among them are e.g. BNB Coin (BNB), Binance USD (BUSD), Left (LEFT), Cardano (ADA), Polygon (MATIC), Cosmos (ATOM), The Sandbox (SAND), Decentraland (MANA), Axie Infinity (AXS) and COTI (COTI), the threat to them will pass. Skoto Ripple Labs won the court case, this paves the way for the aforementioned cryptocurrencies to also cease to be considered securities and the opinion of the SEC on this topic does not count.

Cryptocurrency summer ahead?

The market capitalization of coins without BTC and ETH in December 2022 fell to around USD 280 billion. In June this year, the December low was almost leveled. Following the SEC's lawsuits over Coinbase and Binance capitalization excluding BTC and ETH dropped to USD 293 billion. This morning, it is over USD 367 billion, which means that it is above the place from which the SEC attack on cryptocurrency exchanges took place.

Looking at the chart, the capitalization of altcoins may increase towards USD 400 billion, and if this barrier is exceeded, then the next range could be around USD 520 billion. This would pave the way for a cryptocurrency summer.

Bitcoin dominance declines

As a result, a breath of optimism for alts bitcoin dominance dropped below 50% on the morning of July 14, 2023. At the end of June, it was 52%, which was the highest level in April 2021. So now, the focus of investors seems to be shifting from bitcoin to other cryptocurrencies, and bitcoin itself is still below $31500 and is in consolidation.

To sum up, if alts manage to exit with a capitalization above USD 400 billion, and bitcoin above USD 31500, then the cryptocurrency winter may officially end on the market and the cryptocurrency summer may begin.