Over the course of the previous week, the cryptocurrency market experienced a decline in optimism, marked by a bearish trend. Both Bitcoin and Ethereum encountered notable losses as they dropped to their respective support levels.
The past week witnessed a significant crash triggered by a recent lawsuit filed against two leading cryptocurrency exchanges, Binance and Coinbase, by the U.S. Securities and Exchange Commission (SEC).
The SEC’s case against Binance brought forth an important classification, as 10 cryptocurrencies were introduced into the securities category. These cryptocurrencies include BNB, Binance USD (BUSD), Solana (SOL), Cardano (ADA), Polygon (MATIC), Cosmos, The Sandbox, Decentraland, Axie Infinity, and COTI.
Furthermore, the SEC’s lawsuit against Coinbase named 13 cryptocurrencies, reinforcing the classification of SOL, ADA, MATIC, SAND, and AXS, while introducing an additional six cryptocurrencies: Chiliz (CHZ), Flow (FLOW), Internet Computer, Near, Voyager Token (VGX), and Nexo.
This legal action and the subsequent classification of these cryptocurrencies have played a significant role in the recent market crash, impacting the cryptocurrency industry as a whole.
Various alternative cryptocurrencies, commonly referred to as altcoins, faced a substantial downturn on the weekly chart. Nevertheless, as the week drew to a close, a handful of these altcoins managed to regain some of their losses, although a few still remained in the red on both the weekly and daily charts.
Aptos (APT) is at the top of the list of altcoins experiencing significant losses this week, followed by Solana (SOL) and Polygon (MATIC), second and third place, respectively.
Aptos (APT) experienced a notable increase of 30% over the course of the past seven days; however, it has managed to make a slight recovery, according to the daily chart. As of now, APT is being traded at $6.22, reflecting a 5% rise within the last 24 hours.
Additionally, there has been an 18.18% decrease in the token’s trading volume over the same 24-hour period. Starting the week at $9.1985, the token reached its daily low of $5.7178.
Meanwhile, Solana is also hit hard by the market situation. Over the past week, SOL has experienced a significant loss of approximately 29%. As reported by TronWeekly previously, the Solana Foundation states that SOL is the native token of the decentralized Solana blockchain. They emphasize that SOL should not be considered a security.
Currently, SOL is trading at $15.14, reaching a low of $13.38 and closing the week at $15.56 after starting the week at $21.82. These figures indicate a notable downturn in performance. In the last 24 hours, the token has experienced a 3.35% decrease, while its trading volume has also decreased by 50.35% in the same time period.
Additionally, Polygon (MATIC) has also gained significant attention due to its weekly performance and notable decrease of about 29%.
In response to US SEC action Polygon Lab tweeted their pride in the history of the Polygon network, emphasizing its development and deployment outside the U.S. They highlighted the network’s global community support and the importance of MATIC in ensuring its security.
While making MATIC available to a wide group, they ensured that their actions did not target the U.S. They expressed gratitude for the efforts of regulators, policymakers, and contributors worldwide and conveyed confidence in their past actions and future development. They also teased exciting tech announcements for the week.
Moreover, some popular coins are experiencing losses in weekly charts, including ADA at 24%, LTC at 16%, and SHIB, with an increase of 22%, according to the data from CoinMarketcap.
Bitcoin (BTC) & Ethereum (ETH) Weekly Review
In the previous week, Bitcoin, the prominent cryptocurrency, endured a notable decline as it hit a crucial support level at around $25,400. This development raised concerns among investors and market observers.
Adding to the cryptocurrency industry’s tumultuous week, on June 5th, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Binance.
However, on June 8th, the analytics firm Santiment provided a glimmer of hope for Bitcoin enthusiasts. In a tweet, Santiment highlighted the increasing volatility across the overall market and emphasized the surge in Bitcoin’s utility.
They reported that the number of unique addresses engaging with the Bitcoin network had surpassed 1 million on each of the preceding two days. This occurrence marked the first time since April 21st that such a level of activity had been observed on the Bitcoin network.
During the preceding week, Ethereum, another prominent cryptocurrency, experienced a trajectory similar to Bitcoin. The price of Ethereum dropped to a low point of $1,721.44, causing concern among investors and traders.
Adding to the analysis of Ethereum’s market dynamics, the analytics firm Santiment provided insights through a tweet. They reported that the supply of Ethereum on exchanges had reached record lows, currently standing at just 9.47%.
This decrease in supply suggests a lower risk of a future selloff in the Ethereum market. It indicates that fewer investors are willing to sell their Ethereum holdings, potentially stabilizing the market and reducing downward pressure on the price.
However, Santiment also highlighted a potential source of volatility. They observed that the number of active deposit addresses for Ethereum had reached its highest level since March.
According to CoinMarketCap, Bitcoin is currently trading at $25,834.00, with a 3.79% decrease over the past seven days and 0.51% in the past 24 hours. On the other hand, ETH is being traded at $1,740.66, experiencing a 0.84% decrease in the past 24 hours and 7.11% over the past seven days.