DeFi tokens have experienced a spectacular surge since the election of Donald Trump. Some of these digital assets are even seeing gains of over 30%. This renewed interest could well herald better days for the crypto market.
Election of pro-crypto candidate Trump: What impact on the DeFi market?
The recent election of Donald Trump as President of the United States could provoke a regulatory shake-up for the crypto industry (and particularly for DeFi tokens). The SEC, under the leadership of Gary Gensler, has indeed exerted strong pressure on DeFi projects. The American crypto regulator often describes their tokens as “valueless governance” due to the lack of redistribution of protocol fees to holders.
According to Charlie Sherry, crypto analyst at BTC Markets, investors are now hoping less restrictive cryptographic regulation under the Trump administration (especially if Gensler were to resign by early 2025).
The announcement of Trump's victory therefore boosted digital assets like Uniswap and Lido. Their value jumped by +35% and +20% respectively. Which illustrates a return of investor confidence in the crypto market.
DeFi Tokens: What are the future prospects of these crypto assets?
With the possibility of a more flexible framework under Trumpsome DeFi protocols are considering revising their value accumulation mechanisms. The goal: to create intrinsic value for crypto token holders.
For example, the Aave protocol works on a fee change proposal. This could redistribute a share of revenue to holders of AAVE crypto-assets.
Similarly, Uniswap's new layer 2 blockchain will introduce fee redistribution to UNI holders. UNI will therefore move from a simple governance token into a true utility digital asset.
That's not all! The protocols behind LIDO, Maker (MKR), and ENA are also considering adopting similar models. They thus hope take advantage of regulatory flexibility expected to offer more value to crypto investors.
The year 2025 could therefore prove decisive for the crypto market. With the Trump presidency, a new chapter is opening for the sector.
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