As a seasoned researcher with over two decades of experience in the financial sector, I have witnessed countless market fluctuations driven by political events and regulatory changes. However, the surge in DeFi altcoin prices following Donald Trump’s victory has left me quite intrigued.
The prices of Bitcoin and various Decentralized Finance (DeFi) altcoins experienced a spike when it was clear that Donald Trump had several routes to winning the presidency.
In the past 24 hours, prices of decentralized finance tokens surged by more than 14%, with crypto experts rejoicing following the election of Trump as the 47th U.S. president. The combined market cap of the top 100 DeFi coins reached over $78 billion, according to CoinGecko. Notable gainers included Chainlink (LINK), Uniswap (UNI), CoW Protocol (COW), Aave (AAVE), LidoDAO (LDO), and Maker (MKR), which all saw double-digit percentage increases.
84%, which is the maximum daily surge, was recorded by the CoW Protocol – an unprecedented growth. On the other hand, UNI and Aave experienced almost a 30% increase each, as triumphant crypto investors celebrated following Donald Trump’s election victory.
The growth in DeFi (Decentralized Finance) followed a larger increase in cryptocurrency prices, driven by the election of a candidate seen as supportive of Bitcoin and blockchain technology. Bitcoin (BTC) surpassed $75,000, setting a new record high for the largest crypto token. Ethereum (ETH) moved near $3,000, increasing by 6.8%, while Solana’s (SOL) rise of 13% brought the coin closer to $200.
It is possible that the crypto industry’s hope for regulations friendly to cryptocurrencies, along with clear guidelines for digital assets, under the Trump administration might have contributed to the relief felt towards DeFi tokens. During his campaign trail, Gary Gensler, the chair of the Securities and Exchange Commission, was one of the figures dismissed by Trump as he courted the blockchain voting constituency.
Approximately 40 million Americans have invested in cryptocurrencies, but the local enthusiasm for blockchain assets hasn’t prevented ongoing regulatory scrutiny. For instance, Chair Gensler of the SEC has taken multiple steps to enforce regulations against digital asset operators, citing non-compliance as the reason.
In the surge of DeFi and cryptocurrency markets due to anticipation of less stringent regulation, experts highlighted other potential reasons that might sustain a long-term bullish trend.
Georgii Verbitskii, founder of TYMIO, predicts increased market activity after Donald Trump’s election win, however, he expects market volatility to persist until the Federal Reserve takes further action. In an interview with crypto.news on October 6th, he pointed out that market fluctuations may continue until institutional investors and those involved in crypto ETFs have more clarity regarding their investment decisions.
Additionally, an essential development to keep in mind is the upcoming Federal Reserve’s interest rate announcement this week. With the election and the Federal Reserve’s decision on interest rates pending, significant players are likely to postpone making new moves. As a result, market volatility might persist for the time being.
Georgii Verbitskii, TYMIO founder
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2024-11-06 18:54