Two Cryptocurrencies That Were Dramatically Affected by the Launch of EDX

How Do EDX Markets Work?

A new centralized exchange called EDX Markets debuted on June 20th and is supported by some of Wall Street's largest names. The founding investors are Citadel Securities, Fidelity Investments, Charles Schwab, Paradigm, Sequoia Capital, and Virtu Financial. Other well-known companies also participate as strategic investors. EDX Markets will undoubtedly be very successful, but it also promises to offer a lot more. EDX asserts that it will give the cryptocurrency industry a "traditional finance" touch and become the go-to platform for institutions and ordinary investors who have been looking for a safe, effective, and regulated cryptocurrency exchange.

What Coins Will Be Available on This Exclusive Exchange?

Only Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH) will be given special treatment. What makes these four coins so unique then?

Let's start with the fact that Bitcoin was formed in 2009, Litecoin launched in 2011, and Ethereum was introduced in 2014. These three names are legends in the industry and represent some of the most successful coins of all time, and there is also Bitcoin Cash.

When the Bitcoin community was divided over whether to expand the block size to enable a higher transaction volume in 2017, BCH was born out of a hard fork of Bitcoin. BCH settled on blocks of 32MB as opposed to BTC's 1MB at the time. The Bitcoin blockchain's most successful hard fork is neither the first nor the last.

However, BCH only controls 0.3797% of the market capitalization of all cryptocurrencies. So why was it picked instead of Cardano or Solana, which have a market size that is around twice or triple that of BCH? The recent classification of those and other prominent cryptocurrencies as securities is the cause. Despite the fact that both have since challenged their security categorization, it is evident from EDX's listings that significant institutions and exchanges are staying away from coins like Solana for the time being because of the SEC charges. On the other hand, as it earns the title of official red-carpet cryptocurrency, Bitcoin Cash is seeing a fresh wave of optimism.

One week after the debut of EDX Markets, Solana is down around 16% over the past 30 days, whereas Bitcoin Cash has increased 110%. There is a connection between the two coins. They hold the record for the greatest drop from all-time highs among the top 20 cryptocurrencies by market capitalization. Bitcoin Cash is still trading 95% below its all-time high despite recent advances, while Solana is currently trading 94% below peak pricing.