Altcoin Turmoil on Saturday: Reasons Behind the Plummeting of Polygon, Solana, Dogecoin, Shiba Inu, and Other Cryptocurrencies
Most altcoins fell sharply on Saturday, with several suffering losses of over 20%, amid the SEC’s lawsuits against cryptocurrency exchanges Binance and Coinbase. DeFi token Polygon MATIC/USD led the slide, slumping 27.75%, while Conflux CFX/USD and EOS EOS/USD both plunged about 25%. Also seeing steep losses were Apecoin APE/USD (down over 24%), Solana SOL/USD (down over 22%), and Axie Infinity AXS/USD (also down over 22%). Meme cryptos Dogecoin DOGE/USD and Shiba Inu SHIB/USD fell over 15% and 16% respectively. Bitcoin and Ethereum were down a more modest 3.54% and 5.54% respectively. Digital tokens resisting the sell-off included dollar-linked stablecoins such as Gemini Dollar GUSD/USD, Pax Dollar USDP/USD, Tether USDT/USD, and USD Coin USDC/USD. The SEC’s decision to label 13 tokens as securities in its lawsuit may bring those 13 tokens under stricter regulations that apply to securities. There was speculation that a large unnamed crypto fund was liquidating its holdings connected to “the looming regulatory headaches in the US,” said one tweet. Crypto-tracked futures showed $300m worth of liquidations on Saturday, which was more than the nine-month record liquidation figure from earlier this week.