The "Trump Effect" Strikes Again – DeFi, AI, and Altcoins to Benefit from Policy Dividends?

2/6/2025, 7:31:10 AM
Intermediate
AltcoinsDeFiAI
The article provides an in-depth analysis of the potential impact of the executive orders signed by Trump on the cryptocurrency and artificial intelligence sectors, particularly focusing on DeFi, AI, RWA, Meme coins, and the Solana ecosystem. It explores the positive changes that Trump’s policies could bring, such as the legalization of DeFi, the integration of AI with cryptocurrency, tokenization of real-world assets, and the rise of Meme coins.

On January 23, 2025, Trump signed a highly anticipated executive order at the White House, officially announcing that the U.S. would increase policy support for artificial intelligence (AI) and digital cryptocurrencies. This not only signals Trump’s intent to propel the U.S. to a leading position in the global AI race but also sends a positive signal to the cryptocurrency sector.

Compared to the regulatory approach of the Biden administration, Trump’s policies are bold and sweeping, potentially allowing projects that have been overshadowed by regulatory concerns to see a much-needed revival. From DeFi to AI, and even Meme coins, can these sectors experience a new wave of growth under the influence of the “Trump Effect”? Will he, like last time with the “$Trump Coin craze,” catch the market by surprise once again?

This article by Biteye outlines several key sectors and related tokens that could benefit from these developments.

1. DeFi: Compliance Accelerates Mainstream Adoption

The DeFi project World Liberty Financial (@worldlibertyfi), launched by the Trump family, has undoubtedly given a strong boost to the DeFi space. The WLFI project was not rushed but was carefully prepared with legal compliance, operating within the regulatory framework, particularly focusing on compliance in advance. In other words, beyond showing a strong optimism for DeFi, WLFI may also signal a potential shift toward a more relaxed regulatory environment for the crypto industry under Trump’s administration.

Additionally, based on the new DeFi tax regulations proposed by the U.S. IRS in December 2024, it can be speculated that more systematic DeFi regulatory rules may be introduced in 2025, making compliance a key trend in the crypto development landscape. The establishment of a compliance framework to advance the DeFi industry, coupled with Trump’s relaxed stance on crypto regulations, could encourage more traditional financial institutions to engage in the DeFi space. Currently, $LINK and $AVAX are the top two tokens by market capitalization in the DeFi space and are part of WLFI’s holdings, which may see new opportunities with these policy adjustments.

2. AI: Trump Vows to Make the U.S. the World Capital of Artificial Intelligence

In his inauguration speech, Trump mentioned increasing investments and development in the field of artificial intelligence (AI), especially in decentralized AI infrastructure. On Tuesday, the White House announced a partnership with tech giants like Oracle, OpenAI, and SoftBank to launch a $500 billion AI infrastructure project. By Thursday, Trump signed an executive order related to the crypto industry and AI, setting a 180-day deadline to create an “Artificial Intelligence Action Plan,” establish a federal regulatory framework for managing digital assets (including stablecoins), and assess the creation of a strategic national digital asset reserve. The executive order also banned central bank digital currencies (CBDCs), with Trump arguing that they could “threaten the stability of the financial system, individual privacy, and U.S. sovereignty.”

Against this background, the potential for AI and crypto integration is particularly noteworthy, especially in the DeFi x AI (DeFAI) sector, where decentralized AI applications and algorithmic trading could receive further boost.

3. RWA & DePIN: Tokenization of Real-World Assets

The Trump family’s World Liberty Financial (@worldlibertyfi) is not only involved in the DeFi space but has also ventured into tokenizing real-world assets (RWA), with tokens like $ENA and $ONDO. Robinhood CEO Vlad Tenev and well-known cryptocurrency trader Andrew Kang have both expressed optimism about accelerating the transfer of stocks, private companies, and RWAs to blockchain through tokenization under Trump’s administration. The recently launched RWAFi concept project, Plume Network, was also publicly invited to Trump’s inauguration ball.

In addition to RWA, last month, Trump spoke at the Blockchain Association annual gala, stating that real-use cases like DePIN are helping to legitimize cryptocurrency and are a priority for legislation.

This raises the question: how will Trump’s presidency affect the RWA and DePIN sectors? With a more relaxed regulatory environment, these sectors may enter a golden development period.

4. Meme Coins & Solana Ecosystem: Reassessing the Potential of “Alt Seasons”

The $TRUMP meme coin, launched by Trump, created a market cap of $24 billion on its first day, sparking a new wave of interest in the meme coin sector, with Web2 speculators rushing in. The hype surrounding $TRUMP is unprecedented in crypto history, blending politics and finance in a way rarely seen before—“president-issued coins” will undoubtedly have a lasting market impact.

Moreover, the decision to deploy the $TRUMP token on the Solana blockchain further strengthened Solana’s market identity and could become a catalyst for its future development. Potential impacts include:

  1. Increased capital inflow into the Solana ecosystem: Due to $TRUMP’s high market cap and the influence of the Trump family, meme coin projects on the Solana chain have attracted significant capital and market attention. This capital flow could lead to more developers and projects choosing Solana as their issuance and operating platform.
  2. Potential for Solana ETF approval: As a high-performance blockchain, Solana has a foundation for market acceptance. Trump’s involvement not only increases Solana’s market visibility but also aids in its recognition in traditional financial markets, potentially accelerating the approval of a Solana ETF.
  3. Potential spark for “Alt Seasons”: Meme coins driven by celebrity and political influence may trigger the emergence of similar projects, absorbing much of the liquidity on-chain and potentially driving the next “alt season.”

5. World Liberty Holdings & U.S.-based Tokens: Strong Connection to Trump

These two sectors have a relatively strong connection to Trump and do not require further elaboration. Currently, the top ten tokens held by World Liberty include: $ETH, $wBTC, $STETH, $USDC, $TRX, $USDT, $AAVE, $LINK, $ENA, and $ONDO. Additionally, Trump’s inauguration and crypto ball sponsorship projects to watch include TRON, Ripple, Anchorage, Kraken, Sui, MetaMask, Galaxy, Ondo (ONDO), Solana, Etoro, Uniswap, and crypto-listed companies like Coinbase, MicroStrategy, Marathon Digital, Nano Labs, Exodus, and Metaplanet.

6. Conclusion

From DeFi to AI, from RWA tokenization to meme coins, as the “crypto president,” every move Trump makes is challenging the traditional industry framework. His crypto policies could drive the industry toward greater compliance and maturity in the coming years.

However, the true future of the crypto industry depends not only on short-term policy benefits but also on continuous technological innovation and the ongoing progress of compliance. Can Solana break through its bottleneck during this opportunity? Will sectors like DeFi and RWA thrive within a compliant framework? At the intersection of relaxed policies and technological innovation, how will crypto assets dance with the traditional financial system? We can foresee that the coming years will be a critical period for all these transformations.

Disclaimer:

  1. This article is reproduced from [X]. Copyright belongs to the original author [Biteye core contributor viee]. If you have any objection to the reprint, please contact Gate Learn Team, the team will handle it as soon as possible according to relevant procedures.
  2. Disclaimer: The views and opinions expressed in this article represent only the author’s personal views and do not constitute any investment advice.
  3. Other language versions of the article are translated by the Gate Learn team. Unless otherwise stated, the translated article may not be copied, distributed or plagiarized.

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