Asia offers hope to Solana and Cardano under SEC scrutiny

  • Solana and Cardano are listed as tradable digital assets in Indonesia.
  • SOL and ADA have seen price rallies despite persistent downtrends.

Solana [SOL] and Gimbal [ADA] found themselves entangled in the scrutiny of the United States Securities and Exchange Commission. Still, a silver lining has emerged from recent developments in Asia, potentially offering respite to assets and their holders. While the regulatory situation in the United States remains uncertain and unclear, news from Asia brings a new wave of optimism.

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Solana and Cardano find respite in Asia

In a notable turn of events, Solana and Cardano have been classified as securities by the United States Securities and Exchange Commission. This caused a severe blow to their prices and left their future uncertain.

However, a recent development from Asia, particularly Indonesia, has cast a glimmer of hope in the situation. A report of WuBlockchain revealed that the Indonesian government has designated SOL and ADA as tradable assets. This signaled a contrasting outlook compared to the United States.

This announcement from Indonesia has several positive implications for Solana and Cardano. First, it would grant crypto traders in the country the freedom to trade these assets without the same level of scrutiny that faces the United States.

Second, it provided a degree of regulatory clarity that had previously been lacking, potentially encouraging increased business activity. Remarkably, the Indonesian government has listed 501 cryptocurrencies, encompassing the majority of assets classified as securities by the US SEC.

Meanwhile, news out of Indonesia offered renewed optimism for SOL and ADA and their respective holders. It presented a favorable business environment and indicated a divergence in regulatory outlook between different regions. This could thus have an impact on the market dynamics of these cryptocurrencies.

Immediate reaction?

Analysis of the active user metric on DefiLlama showed some interesting trends in user activity for Solana and Cardano. Starting with Solana, there was a noticeable increase in the number of active users in May, but thereafter the numbers dwindled.

On average, the network maintained around 100,000 active users. Despite news of the SEC’s involvement, which typically stifles user engagement, interaction with the Solana network has remained relatively robust. There were around 93,000 active users at the time of writing this article.

Active Solana Users

Source: DéfiLlama

Shifting the focus to Cardano, the active address metric on DefiLlama revealed a more fluctuating pattern. The number of active addresses has experienced peaks and troughs over time. However, there has been a drop in active addresses recently, with around 48,000 active addresses recorded so far.

Active Cardano Users

Source: DéfiLlama

Solana and Cardano price trend

Looking at Solana’s daily time frame chart, a noticeable downtrend could be seen. However, a recovery is currently underway, characterized by consecutive uptrends.

At the time of this writing, SOL was trading around $15.7, experiencing a slight increase in value. Despite this positive momentum, the general trend of the asset remained bearish, as indicated by its relative strength index (RSI).

SOL/USD price trend

Source: Trading View

How much is 1,10,100 ADA worth today

Likewise, a significant drop in its price could be seen on Cardano’s daily timeframe chart. However, like Solana, ADA was also undergoing a price rally.

As of this writing, ADA is trading around $0.26, reflecting a slight increase in value. Despite the recent price rally, ADA’s RSI indicated that it was still in the oversold zone.

ADA/USD price movement

Source: Trading View

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