Dan Gambardello, the founder of Crypto Capital Venture, has recently revealed he is optimistic about a potential surge in altcoins in the near future, basing his positive outlook on a favorable outcome for Coinbase in its ongoing legal battle with the U.S. Securities and Exchange Commission (SEC).
Last summer, the SEC took legal action against Coinbase, alleging the company violated several securities laws by offering trading services in what the SEC deemed unregistered securities, including cryptocurrencies like Solana (SOL), Cardano (ADA), and Polygon (MATIC).
Gambardello referred to an upcoming court hearing on between Coinbase and the SEC as “crypto’s biggest deal” as the meeting will focus on oral arguments regarding Coinbase’s request to dismiss the SEC’s charges. Per Gambardello, it could ignite a “mega altcoin run.”
COINBASE vs. SEC Crypto Case Could IGNITE Mega Altcoin Run! (Here Is How)IntroSEC has some issuesUniswap case and ETH as securityXRP example for Cardano and altcoins pic.twitter.com/VRkqun6ZMn— Dan Gambardello (@cryptorecruitr) January 16, 2024
The analyst drew parallels with Ripple’s legal battle against the regulator over the XRP token, where its value and market cap soared last summer following Judge Analisa Torres’s decision that Ripple’s sale of XRP was not an investment contract offer.
Gambardello suggested that Cardano’s ADA could see a similar rise if Coinbase wins its case. Notably, Cardano was recently forecasted to surge exponentially after analyst Guy Turner pointed to a bullish pattern on its price chart.
An interesting point Turner notes is the bullish signal from the total value locked in Cardano’s decentralized finance (DeFi) protocols, indicating rising demand after surpassing $400 million in TVL last month.
He cautions, however, that there are short-term bearish trends looming over the ongoing bearish sell pressure for ADA. Per his words, this selling pressure may be coming from Emurgo, Input Output Global, and the Cardano Foundation as they sell to fund their operations.
Despite this short-term pressure, Turner believes these developments are positive for ADA’s long-term growth. Cardano, as reported, has seen data from on-chain analytics firm Santiment show it has maintained its top stop in cryptocurrency development activity after surpassing the “blockchain of blockchains” Polkadot ($DOT) and its public pre-production environment Kusama ($KSM).
Last year has seen an exponential growth in the Cardano network, as evidenced by IOG’s development reports. The report highlighted the launch of 152 projects with an additional 1,307 in the development phase on the network. The Cardano platform has processed 79.7 million transactions, indicating a rise in its adoption and usage.
In terms of token metrics, the report disclosed that there are 9.1 million native tokens in circulation within the ecosystem, regulated by 81,621 token policies.
Furthermore, the implementation of Plutus scripts, a toolkit for smart contract development, has achieved 6,260 deployments for version 1 and 4,981 for version 2. This underscores Cardano’s consistent advancement in the deployment and execution of smart contracts.
Adding to the discourse, lawyer James Murphy outlined four potential outcomes of the upcoming hearing, including a scenario where Coinbase’s motion could lead to the case being dismissed, saying the judge “almost certainly won’t rule at the hearing, but she might drop some hints through her questioning.”