Crypto News

Bitcoin, Ethereum, Tether dominance grows as cyber security and fan tokens challenge the market

Bitcoin dominance is on the rise as crypto investors attempt to understand the implications of the recent SEC lawsuits against Coinbase and Binance. It appears that investors are converting tokens proposed as securities by the SEC into less controversial assets such as bitcoin.

crypto dominance

Since the lawsuits were filed on June 6, the total market cap of the crypto industry has fallen 6.4% from $1.12 trillion to $1.04 trillion. Meanwhile, bitcoin’s Effect ETH grew by 1.92% from 45.82% to 47.74%, Ethereum dominance increased by 0.27% from 19.83% to 20.08%, and Tether dominance increased by 0.33% from 7.63% to 8.00%.

In the past 24 hours, the total crypto market cap, excluding bitcoin, fell by 7.7% from $592 million to $546 million, while bitcoin’s market cap fell by only 2.92% from $513 million to $498 million.

These moves support the thesis that crypto investors are moving capital into assets outside the SEC’s direct line of fire, at least for now.

Among the reports of major institutional players moving capital around some crypto services closing markets and US platforms, fear and greed index Still reports ‘neutral’ position in the market. The index has maintained a mostly neutral rating since early May, falling briefly to its second lowest score of the year on June 6. The score reached a neutral rating within 24 hours; Thus, the weekly score is currently unaffected.

sector performance

The market selloff has not been uniform across sectors, with some industries experiencing significant declines, while others have managed to stand their ground or grow. Top performers included the $180M cyber security sector with an increase of 1.11% and FAN Token ($255M mcap), which saw a 4.40% increase. Other sectors experiencing positive changes include lower cap sectors such as debit cards, with an increase of 0.71%, and meme tokens, with an increase of 1.27%.

On the contrary, many sectors have been hit hard by the sell-off. The $63 million cannabis sector saw a massive 28.35% drop, followed by a 46.76% drop in the abandoned tokens sector, indicating some investors are dumping tokens from dead projects still in their portfolios.

Other severely affected sectors include eCommerce ($555 million), with a decrease of 18.35%, and media ($3.3 billion), which fell 16.19%.

Impact on the Crypto Landscape

While the effects of the SEC lawsuits and market selloff are still unfolding, a shift in investor sentiment towards more established assets like bitcoin and ethereum may signal a flight to relative safety in the face of regulatory uncertainty.

The current ‘Neutral’ rating on the Fear & Greed Index suggests that the market has not yet fully reacted to these recent events. However, the situation remains fluid, and further developments, such as additional regulatory actions or market changes, could rapidly alter investor sentiment and market dynamics.

There is no doubt that the crypto market is experiencing significant turbulence due to the recent SEC lawsuits and subsequent selloff.

However, the lack of clarity from the SEC hurts the ability of investors and Web3 companies to safely navigate the current crypto landscape. With US influence in the global economy, the SEC’s stance is hard to ignore, and the industry awaits further developments.

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