Deep Dive: What does SEC indictment mean for Cardano, Solana and Polygon?

Price Analysis

To get an idea of ​​the news, we have made an overview of the price on June 2 and June 9 in Table 1. In the table we look at different coins, including the 3 largest crypto projects mentioned in the indictment, but also Bitcoin (BTC).

The largest coin was not mentioned and is used as a frame of reference in the price analysis. The SEC’s indictment was announced on June 5, what is immediately noticeable is that the currencies mentioned in the allegations are falling the hardest. In addition, the ADA price fell the most by 15.4% in just 7 days.

The BTC price is doing a lot better and only fell 2.2%, not surprising since the coin did not receive any charges from the SEC. It suggests that investors are turning to bitcoin due to uncertainty in the market for the various altcoin projects now under attack by the US government agency.

Price June 2Price June 9Difference
Bitcoin$27,102$26,504-2.2%
Cardano$0.37$0.31-15.4%
Solana$21.00$18.56-11.8%
Polygon$0.90$0.77-14.5%
Table 1: Price change from June 2 to June 9 (Source; CoinGecko)

Conclusion

The market has reacted strongly to the SEC’s indictment. Various crypto projects were also mentioned in it and are seen by the US government agency as an effect that can cause serious complications for the networks. The three largest projects that were mentioned, Cardano, Solana and Polygon, immediately fell off course.

For ADA, the price even fell by 15.4% in just 7 days, while BTC remained relatively stable. It shows that investors are losing confidence in the currencies designated by the SEC as security and are moving assets to more established currencies or even FIAT currencies.

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Meanwhile, we also see that the behavior of network users is changing. For example, Cardano is experiencing an abrupt stagnation of DeFi growth and there is suddenly considerable activity on the Polygon network. It shows that it is uncertain about the future and that investors are trying to anticipate it. In the coming months, the actual impact on the cryptocurrency market will follow.

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