Ethereum's recent performance has led many to speculate whether it is really going to take off, and Trump is likely to form a government that is friendly to cryptocurrencies, which may create conditions for a new round of DeFi wave.
Ethereum broke through the important level of 2800 today, the highest value since August, and got rid of the previous slump between $2300 and $2600. If Trump is re-elected as the US president, it may change the overall situation of Ethereum and the DeFi industry.
Trump’s presidency could mean looser regulation of cryptocurrencies, including Ethereum and DeFi projects. Many in the market, including prominent figures like Arthur Cheong of DeFiance Capital, believe that Trump could bring about a “DeFi renaissance.”
This statement implies that DeFi can thrive in an environment with fewer regulatory hindrances.
If Trump lowers these regulatory barriers, we may see new projects emerge and the value of DeFi-related tokens rise, and as more people get involved, the demand for Ethereum (ETH) may be boosted. Tracking data on the ratio of Ethereum (ETH) to Bitcoin shows that investor interest in Ethereum (ETH) has declined recently.
But given Trump’s likely actions, this trend may change, especially if Ethereum (ETH) is able to gain a more favorable position in the market.
Another sign of DeFi’s growth potential comes from key metrics such as user activity and capital inflows, both of which have been on an upward trend recently.
Aave, a core project in the DeFi space, is reportedly performing better than its peak at the end of 2021, demonstrating the resilience and maturity of the industry. DeFi’s growing visibility on social media platforms, especially X (formerly Twitter), also shows that retail investors are paying more attention to it.
Data shows that the development trend of DeFi has surpassed popular fields such as artificial intelligence or meme coins, which means that more and more ordinary investors are beginning to become interested in DeFi.
The data also shows that the DeFi index has shown a positive market reaction, with the prices of top DeFi tokens rising by an average of 22% in the past 24 hours. The expectation that Trump may implement crypto-friendly policies after taking office may be the reason for the surge in prices. With Trump taking office, many people expect that the compliance costs of DeFi platforms will be reduced and the rules will be clearer.
Trump’s policies may even reclassify certain tokens as commodities rather than securities. This move could open up more revenue avenues, and DeFi projects may be able to implement “fee switching” to obtain stable income. Although Trump’s policies are still in the speculation stage, the market has shown positive signs.
If these expectations are met, DeFi and Ethereum could be on the verge of a major rally. Will Trump’s presidency really kick off the next phase of DeFi’s growth? That remains to be seen, but the early signs are encouraging.
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