What Triggered the Sudden Rally in SOL, MATIC, and ADA?
Investors observed a dramatic surge in several cryptocurrencies between late night and early morning (14th), with Solana (SOL), Polygon (MATIC), and Cardano (ADA) leading the pack—each skyrocketing over 20% intraday. But what fueled this rally?
👉 Discover how regulatory wins impact crypto markets
The Ripple Effect: XRP’s Legal Victory
The catalyst traces back to Ripple (XRP)‘s landmark legal battle with the U.S. Securities and Exchange Commission (SEC). For two years, Ripple faced allegations of selling unregistered securities, violating the U.S. Securities Act.
On July 13, U.S. District Judge Torres delivered a summary judgment:
– XRP is not a security when sold programmatically on exchanges.
– However, institutional sales of XRP met the Howey Test criteria, classifying those transactions as securities.
Despite potential SEC appeals, the ruling ignited a market frenzy:
– XRP soared 30% within an hour, peaking at a 60% daily gain ($0.938).
Why SOL, MATIC, and ADA Benefited
Judge Torres’ decision set a precedent for other SEC-targeted tokens. Earlier, the SEC labeled SOL, MATIC, and ADA as securities in lawsuits against Binance and Coinbase, prompting Robinhood to delist them (causing ~30% price drops).
The XRP ruling revived optimism that these assets might also escape securities classification—though none face direct SEC lawsuits yet.
👉 Explore top-performing altcoins post-regulation clarity
Full List of SEC’s “Crypto Securities”
Beyond SOL, MATIC, and ADA, other tokens on the SEC’s list saw varied gains:
| Token | Symbol | Notes |
|---|---|---|
| Cosmos | ATOM | Interoperability blockchain |
| Binance Coin | BNB | Exchange token |
| Filecoin | FIL | Decentralized storage |
| Sandbox | SAND | Metaverse gaming |
| Algorand | ALGO | Proof-of-stake blockchain |
Caveat: XRP’s case doesn’t blanket-apply to all. For example, Axie Infinity (AXS) and Decentraland (MANA) face unique scrutiny as gaming/metaverse tokens.
FAQs: Decoding the Crypto Rally
1. Why did XRP’s win boost other cryptocurrencies?
The ruling challenged the SEC’s broad securities classification, fostering hope for similarly accused tokens like SOL and ADA.
2. Could the SEC overturn the XRP decision?
Yes. The SEC may appeal, but the initial judgment sets a temporary legal benchmark.
3. Which tokens remain high-risk per the SEC?
Gaming/metaverse tokens (e.g., SAND, MANA) and those with active lawsuits (e.g., FLOW) face ongoing uncertainty.
4. How long will the rally last?
Market sentiment hinges on further SEC actions. Traders should monitor regulatory updates.
5. Are SOL, MATIC, and ADA now “safe” investments?
Not guaranteed. Without formal SEC clearance, volatility may persist.
Key Takeaways:
– Regulatory clarity drives crypto markets. XRP’s partial win ignited a broader altcoin rally.
– SEC’s securities list remains fluid; projects with clear utility (e.g., SOL’s scalability) may fare better.
– Diversify research—legal outcomes vary by token use case.