Ether, the second-largest cryptocurrency, might find a new lease on life with the continuity of Trump's policies. Post-November 5, Ethereum's ETFs surged 49%, surpassing Bitcoin's 38%. This has prompted investors to reconsider Ethereum amid potential regulatory changes.
Trump's Impact on Ethereum
The year 2024 wasn't favorable for Ethereum, as Bitcoin skyrocketed 126%. Meanwhile, Solana continued attracting attention and capital. Under Trump, Ethereum might see new growth if regulations favor the DeFi infrastructure, tokenization, and smart contracts.
The Double-Edged Growth Effect
Despite Ethereum remaining a leader in DeFi, competitors make it challenging to remain dominant. Layer-2 networks like Arbitrum and Optimism have grown 430% since March, taking away economic activity from Ethereum. Challenges from new technology and infrastructure changes require clear vision and strategies.
Long Road to Success
While Bitcoin dominates the ETF market, Ethereum trails with modest inflows. Despite this, the decentralized financial system has significant growth potential through tokenization and decentralized applications. Institutions like JPMorgan are already utilizing Ethereum for real-time payments.
Regulatory support and institutional investor interest could significantly impact Ethereum's future growth. The coming year will determine if Ethereum can overcome competition and solidify its market position.
