This week was the culmination of many years of promises in the cryptography industry. President Trump has ended a part of the regulations on cryptography thanks to coercive measures taken in recent years, and the Securities and Exchange Commission (SEC) has withdrawn SAB 122, which prevented banks from holding crypto -Monaies for their customers. But these movements did not help the market and many altcoins fell two figures during the week.
According to data provided by S&P Global Market Intelligence, Cardano (Ada -2.52%)) was one of the biggest losers, down 13.6% in last week, Pea (POINT -3.07%)) fell 14.4%, and Uniswap (UNITED -6.81%)) dropped by 15.4%.
Cryptographic regulations do not cause purchasing frenzy
This week was more likely to “sell the news” in the field of cryptography, because the industry was looking for a lot of news, but buyers did not show up. In fact, whale investors sold 180 million Cardano tokens this week despite potentially better market conditions.
I have said for months than better market conditions for cryptocurrencies from a regulatory point of view would not necessarily result in prices for all cryptocurrencies. Tokens must have a request to increase, and companies that create innovative products on the blockchain do not necessarily lead to higher demand for the tokens themselves.
The Trump coin undermines the bullish arguments for certain cryptocurrencies
The other great news of the week was the launch of the Trump token tokend last weekend, which was not launched on the traditionally popular market. Ethereum (Eth -2.96%)) Layer 2 solutions like Polkadot; He was launched the Solara (GROUND -7.13%)). Consequently, it also does not use the current Ethereum exchange tools like Uniswap; He uses chip exchanges and native Solana wallets on an incredibly effective scale.
Solana made nearly 300 million transactions in last month and resisted the stress of the new coin. And if he can manage this, why use more slow and more expensive layer 2 solutions?
UNISWAP also loses market shares in volume and would be threatened if cryptographic activity was moving to Solana, where small transactions have more sense due to much lower costs than most competing blockchains.
In short, Solana sucked the air of the room for the competitors of Polkadot in Cardano, and it is not surprising to see them fall this week.
Now the rubber takes the road
What is clear now is that the crypto has a momentum and that there will probably be a lot of innovation on the blockchain, especially since the advisor David Sacks said today that the meme and the memems and the Non -fungible tokens (NFT) are collectibles. But what does this mean for native blockchain tokens?
It is not clear that all blockchains will get success, and even if this is the case, the value may not lie in the token but rather in what is built above the blockchain. I would not be surprised to see the market sink even lower as part of the electoral euphoria and coins fades and that manufacturers are starting to create real companies. But it could take years to materialize, and this is not the kind of patience that the cryptography market usually has.
Travis Hoium occupies positions in Ethereum and Solana. The Motley Fool occupies positions and recommends Cardano, Ethereum, Solana and Uniswap Protocol Token. The Motley Fool has a policy of disclosure.
