The decentralized finance (DeFi) sector has witnessed a strong resurgence in the wake of Donald Trump’s presidential victory as investors speculate.
The decentralized finance (DeFi) sector has witnessed a strong resurgence in the wake of Donald Trump’s presidential victory as investors speculate that the new administration would propose regulations that are friendlier toward cryptocurrencies in the U.S. The total value locked in this sector has crossed the $92 billion mark, while top tokens have gained unprecedentedly in the immediate aftermath of the election.
Leading this march were market leaders like Uniswap, which had its token price leap 22% to $9.35, while Lido jumped 36% to reach $1.37. Gains from both tokens reflect the growing optimism of reduced regulatory pressure amid the hopes of softer scrutiny from the Securities and Exchange Commission (SEC) under possible new leadership.
The result has increased speculation on possible changes at the SEC, where Chairman Gary Gensler’s tough view of crypto projects may shift under a Trump administration. Perhaps most especially resonating is the rally in projects that have been on the SEC's hit list, such as ImmutableX, which jumped more than 12% to $1.26.
That said, resilience is evidenced in DeFi’s strong user base, recording over 21 million users in September, following 18 million in October. A lot has changed within the industry, and most of the protocols have started using pretty conservative methods—for instance, the inclusion of U.S. Treasury bills as collateral.
This adds another layer of potential dimension to the sector’s regulatory future when considering Trump's new foray into DeFi via World Liberty Financial. Along with the recovery in the broader crypto market, it could perhaps hint at a shift from the recent meme tokens to more advanced DeFi projects.
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