Ethereum's Vitalik Buterin supports tokens hit by SEC crackdown

Vitalik Buterin says US policy shift on crypto has negatively affected several crypto projects, such as Solana.
The Ethereum co-founder states the centralized world is his altcoin’s real competitor, not other projects.
Buterin calls for a fair outcome in the current SEC crackdown on other altcoins.

Ethereum ranks among the few cryptocurrencies that the Securities & Exchange Commission (SEC) left out of its list of securities. While many in the crypto community consider it a “win” for Ethereum, co-founder Vitalik Buterin does not envision such a victory.

Buterin told his 4.9 million followers that the real victory lies in a fair outcome to the whole US policy shift on the crypto industry.

Also read: China crypto narrative is alive as HSBC supports trade in Bitcoin and Ethereum Futures ETF in Hong Kong

Vitalik Buterin voices support to Ethereum competitor Solana in recent tweet

Solana is popular in the crypto community as one of the largest alternatives of Ethereum and is a competitor of the altcoin. Contrary to popular belief, Ethereum creator Vitalik Buterin has voiced his support for the project and commented on the SEC’s crackdown on crypto.

Buterin wrote in his June 30 tweet:

The one comment I'll make is that I feel bad that @solana and other projects are getting hit in this way. They don't deserve it, and if ethereum ends up "winning" through all other blockchains getting kicked off exchanges, that's not an honorable way to win, and in the long term…
— vitalik.eth (@VitalikButerin) June 30, 2023

The Ethereum co-founder explained that the real competition for ETH is not projects like Solana and others but the wider “centralized world” as a whole. Moreover, with other blockchains getting delisted from exchanges, Ethereum is not winning in an honorable way. Buterin called for a fair outcome to the whole situation that doesn’t involve Ether’s alternatives getting hit by the shift in US policy in the long term.

Total value locked in Solana, Polygon and Cardano nosedived in June

When Buterin mentioned Ethereum’s competitors are getting “hit,” it could be explained through this metric. The Total Value Locked (TVL) in Ethereum’s rival chains Solana (SOL), Polygon (MATIC) and Cardano (ADA) has nosedived over the past month.

TVL is a key metric in DeFi. Similar to market capitalization, it represents the value of all assets locked in a given blockchain. A decrease in TVL is an indicator of declining adoption of the blockchain.

The US financial regulator initiated its crackdown on assets on June 5, wiping out TVL in projects like Solana, Polygon and Cardano. Based on data from DeFiLlama, Solana, Polygon and Cardano, TVL declined 3.59%, 7.15% and 9.55%, respectively.

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