According to data from CoinGecko, the market caps of Cardano, Polygon, and Solana have collectively lost $5.5 billion to net outflows since the Securities and Exchange Commission (SEC) labeled them securities in its lawsuits against crypto trading platforms Binance and Coinbase.
Earlier this month, the SEC accused the two companies of supporting the sale of unlicensed securities. Even though many crypto users called the lawsuits “unfair,” it did not stop the mentioned tokens from dropping in value. Besides Polygon, Cardano, and Solana, other cryptocurrencies the agency deemed securities include Axie Infinity, COTI, Decentraland, The Sandbox, Cosmos Hub, and Filecoin.
A week after the SEC announced its lawsuits, the market capitalizations of these tokens had dropped by more than 20%, according to a report from blockchain data company Messari. However, the firm revealed today that some of the tokens had significantly recovered.
Messari says Algorand and Filecoin have both recovered by 18%, while Cosmus Hub’s market cap is up 16% over the last two weeks.
BNB’s Market Cap Continues Declining
Meanwhile, Binance’s exchange token BNB has yet to record a massive recovery. Its market cap is down 22%. Before the SEC lawsuit against Binance, BNB had a market valuation of $46.8 billion. It settles at $37.3 billion as of this writing.
Similarly, Cardano’s market cap is still down 20% since the SEC charges. The eighth largest cryptocurrency trades at $0.2953, with a market valuation of $10.12 billion.
On the other hand, Polygon is struggling the most when it comes to staging a recovery. The token’s market cap stood at $8.34 billion on June 5 but has been declining over the last two weeks. It’s now at $5.89 billion. As per CoinGecko data, MATIC is currently trading for $0.667.
Other Tokens not Labeled as Securities See Their Market Caps Plummet
There are a few tokens which were not mentioned by the SEC in its lawsuits but have seen their market caps decline significantly since June 5. They include Avalanche, whose market valuation is down 11% to $4.62 billion and Optimism, which has dropped 17.46% to $885 million.
Nonetheless, the market is currently on a bullish momentum despite the drops seen in the market caps of some of the leading cryptocurrencies.
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