The partial Ripple victory of July 13 could have major implications for altcoin projects litigating with the SEC. Consulting giant Motley Fool analysts say that 2 names can make a move at this point.
Analysts identify 2 altcoins that will turn Ripple case into rally
Altcoin investors learned in mid-July the outcome of the 2.5-year-long SEC-Ripple lawsuit. On July 13, a US judge ruled that XRP is not a security unless it is sold directly to sophisticated institutional buyers.
The XRP price gained 90% in the 24 hours following that. The lawsuit is also great news for two other cryptocurrencies facing potential SEC action.
Solana (SOL) and Cardano (ADA) were among the coins listed in red due to June’s stock market lawsuits. Both rebounded significantly after the XRP victory. Motley Fool analysts say this momentum is just beginning and SOL and ADA prices are set to ‘explode’.
Cardano (ADA
First up is Cardano, which the SEC referred to as an unregistered security when it filed a lawsuit against Binance and Coinbase in early June. When this happened, investors panicked. Cardano’s price has dropped by about 20%.
It’s easy to see why Cardano immediately rebounded after the XRP court ruling. If the court ruled that XRP is not a security, the same will apply to Cardano.
The big picture here is that Cardano is better than Ethereum in many ways. Cardano offers everything that Ethereum can offer. This includes everything from NFTs to decentralized applications. The missing piece for Cardano has always been smart contracts. But high-profile blockchain upgrades in 2021 and 2022 have resolved this issue.
The most important growth catalyst going forward for Cardano is the DeFi sector, which relies heavily on smart contracts. As long as there is an SEC concern, investors will have concerns about staking Cardano’s DeFi protocols. After all, in the worst-case scenario, you may not be able to “unlock” them later. But the risk of this happening has decreased significantly, and key DeFi metrics for Cardano should continue to evolve.
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Solana was under regulatory scrutiny even before the Binance and Coinbase lawsuits. That’s because former FTX CEO Sam Bankman-Fried was one of Solana’s early investors. Also, after FTX went bust last year, there were inevitably questions to be asked.
That’s why analysts remain concerned about Solana from a regulatory perspective. In the worst-case scenario, the SEC puts additional pressure on Solana and her deep-pocketed venture capital investors.
Maybe Solana investors can breathe a sigh of relief now. The XRP court ruling helps unlock the growth of the Solana ecosystem, which has stalled recently. Analysts are particularly optimistic about Solana’s ability to regain momentum in the NFT sector. Some popular NFT collections had decided to switch to other networks after the FTX collapse. The new SEC regulatory review hasn’t helped matters.
Also, Solana offers something that no other high-end Blockchain can offer. This is: a mobile crypto strategy. This strategy first appeared last summer. It is based on the release of new hardware products. The first product release is Saga, a crypto-optimized Android powered phone. The smartphone Saga hit the market at a price of $ 1,000. It is seen as the key to engaging more users in Blockchain and crypto technology.
How big of a rally can we expect?
Motley Fool analyst Dominic Basulto predicts two scenarios for a potential rally with the Ripple victory:
From my point of view, there are two main outcomes to consider: worst case scenario and best case scenario. In the worst case, the XRP court decision turns out to be a mirage, the SEC decides to go after Cardano and Solana anyway, and there is a complete carnage in the crypto market.
As you follow on Kriptokoin.com, rumors that the Ripple case may be overturned are spreading. Taking this into account, the analyst summarizes an extreme bullish situation as follows:
In the best-case scenario, the XRP court order provides the necessary legal clarity and unlocks a new era of growth for Cardano and Solana. While Cardano is allowed to continue its rapid growth in the DeFi space, Solana could accelerate its mobile crypto strategy. By getting rid of regulatory distractions, both Blockchain ecosystems can grow and both cryptocurrencies start approaching all-time highs from late 2021.
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