Donald Trump's election as the 47th US President has led to a surge in DeFi tokens. Analysts attribute this trend to the anticipation of a more favorable regulatory environment for cryptocurrencies.
Impact of Trump on DeFi Market
Many crypto traders believe that the Trump administration will enhance the investment appeal of holding 'utility' tokens. The expected resignation of SEC Chair Gary Gensler is anticipated to trigger optimism regarding regulation.
DeFi Tokens Market Overview
Among the biggest gainers was Uniswap (UNI), which increased by more than 35% to reach $9.58. Tokens like Maker (MKR), Aave (AAVE), Ethena (ENA), and Lido DAO (LDO) also surged more than 20%. Charlie Sherry, head of crypto analysis at BTC Markets, highlighted the significance of this growth, noting that DeFi tokens were previously considered 'useless governance tokens' with the sole purpose of voting on protocol changes.
Future of DeFi and Expert Predictions
Markus Thielen from 10X Research highlighted the 'buy the laggard' strategy adopted by crypto traders, which involves purchasing underperforming assets in anticipation of their surge. It is predicted that BlackRock's aggressive promotion of its spot ETH ETF in 2025 will lead to Ethereum's rise.
The rise in DeFi tokens underscores the importance of regulatory expectations. Changes in this area could make these tokens more attractive to investors.
