Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesCopyBotsEarn
DeFi tokens jump as Trump win boosts regulatory hopes

DeFi tokens jump as Trump win boosts regulatory hopes

GrafaGrafa2024/11/07 07:37
By:Liezl Gambe

DeFi tokens saw a significant surge following Donald Trump’s election victory, fueling optimism for clearer crypto regulations.

The market witnessed tokens such as Lido’s LDO (CRYPTO:LDO) jumping 40.3% to $1.37, bringing its market cap to nearly $1.2 billion.

Solana-based (CRYPTO:SOL) Raydium (CRYPTO:RAY) and Ethereum-based (CRYPTO:ETH) Uniswap (CRYPTO:UNI) saw similar spikes, with RAY and UNI gaining over 30%, trading at $4.30 and $9.49, respectively.

Ethena’s ENA (CRYPTO:ENA) token increased 35.7% to 47 cents, while Aave (CRYPTO:AAVE) rose 28%, amid rising deposits into lending protocols, which reached a two-year high of $52.4 billion, according to Artemis.

Trump's win, coupled with a more crypto-friendly legislative body, has sparked hope for regulatory clarity in the DeFi ecosystem.

“The biggest Trump-specific change is likely to be a push for greater regulatory clarity around the broader crypto ecosystem,” Seth Ginns of CoinFund noted.

The Biden-Harris administration, under SEC Chairman Gary Gensler, had taken a stringent stance toward crypto, initiating enforcement actions against several DeFi protocols, including Uniswap Labs.

The SEC had also implied that tokens like Lido’s stETH were unregistered securities.

In contrast, Trump is expected to replace Gensler, potentially offering more supportive regulatory guidance for DeFi protocols.

Keyu Liu of Primitive Ventures mentioned that clear regulations could enable DeFi platforms like Uniswap to activate fee switches, allowing revenue to be redistributed to UNI token holders.

This potential shift is seen as a game-changer, resolving revenue distribution challenges in the DeFi sector.

Wintermute, a major crypto market maker, submitted a governance proposal aimed at activating an ENA fee switch, noting that Ethena has already generated $128.4 million in fees this year, per Token Terminal.

Viktor Bunin of Coinbase expressed optimism, anticipating changes that would “fire Gary,” enable ETH staking in ETFs, and curb SEC investigations.

Aerodrome’s Alexander Cutler pointed out that DeFi provides “institutional level products and services, without the value extraction of intermediaries,” which enhances user value.

As Joseph Schiarizzi of Nerite stated, “DeFi is so back,” with Ethereum holders seeing increased wealth and actively using DeFi protocols.

Currently, the total value locked in DeFi protocols stands at nearly $89 billion, according to DefiLlama.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

MARA's stock jumps after raising $1 billion via convertible notes to buy more bitcoin

MARA Holdings announced the successful closing of its $1 billion offering of 0% convertible senior notes due 2030.The bitcoin miner plans to allocate around $199 million of the proceeds to repurchase $212 million in principal of its existing convertible notes due 2026. The remaining funds will be used to acquire more bitcoin.

The Block2024/11/21 16:11

Gold loses luster as institutional demand fuels bitcoin price surge, analysts say

Bitcoin’s 46% surge over the past month, contrasted with gold’s 3% decline, highlights a shifting investor preference toward alternative store-of-value assets, analysts say.Derivatives traders are buying up bitcoin call options ahead of Trump’s inauguration, signaling strong bullish sentiment for the beginning of 2024.

The Block2024/11/21 16:11

SEC is 'engaging' Solana ETF applicants: report

SEC “engaging” on Solana ETF applications, sparking optimism for potential approval in 2025.VanEck, 21Shares, and Bitwise lead Solana ETF filings amid pro-crypto White House hopes.SOL token rises 4.6% to $247.91, bolstered by Solana’s strong DeFi ecosystem and demand.

The Block2024/11/21 16:11