Blockchain and Crypto News: Bitcoin Dominance Hits Two-Year High Amid Regulatory Challenges for Altcoins

Bitcoin’s dominance in the cryptocurrency market, often referred to as Bitcoin dominance, is approaching a two-year high due to increased regulatory scrutiny on altcoins and crypto companies in the United States.

As of the latest update, Bitcoin dominance stands at 47.8%, just below the peak it briefly reached in July 2021 at 48.2%. This steady rise in dominance coincides with stricter regulatory measures imposed on crypto companies, especially in the US.

Regulatory crackdown on altcoins Regulators, including the US Securities and Exchange Commission (SEC), have intensified their scrutiny of the crypto industry. The SEC has even categorized specific tokens, such as SOL, ADA, MATIC, FIL, SAND, AXS, CHZ, FLOW, ICP, NEAR, VGX, DASH, and NEXO, as “investment contracts” and consequently, as securities.

The impact on altcoins Following the SEC’s lawsuits, altcoins named as securities have experienced significant price drops when compared to Bitcoin. The lawsuit against Coinbase, filed on June 6, had a noticeable impact on these tokens.

Solana Foundation’s response The Solana Foundation, in response to the SEC naming SOL as a security, has firmly asserted that “SOL is not a security.” They emphasized that SOL is the native token of the Solana blockchain, a decentralized and community-driven software project.

The uncertain fate of Ethereum Unlike Bitcoin, the regulatory status of Ethereum’s native token, ETH, remains uncertain. There is growing concern within the community that ETH, along with other altcoins, could also be classified as securities.

Potential impact on Bitcoin dominance If Ethereum is officially recognized as a security by regulatory authorities, it could lead to a more rigorous crackdown on cryptocurrencies, excluding Bitcoin. Consequently, this may result in a significant increase in Bitcoin’s dominance in the overall market.

Stay tuned for more blockchain and crypto updates from Golden Sea Studio, your trusted source for industry news.

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