Donald Trump's victory has caused a sharp rise in the cryptocurrency market. Some tokens have seen a larger increase than others, particularly those linked to decentralised finance (DeFi).
DeFi, a sector that has suffered numerous attacks from the US regulator, could benefit from Trump's promises to let the sector develop - which would partly explain this rise in the market.
Uniswap (UNI) +30%
In 2024, Uniswap Labs received a warning from the SEC, indicating that the regulator was considering action against the company.
The same year, a Uniswap protocol governance vote to implement a "fee switch" failed, mainly due to opposition from venture capital fund a16z. The latter feared that this measure would reclassify the UNI token as a financial security in the United States.
It should be noted that beyond the regulatory implications, a fee switch would not necessarily be beneficial for the protocol. Indeed, it could make Uniswap pools less competitive, risking losing some of the volume they currently attract.
The graph below shows that less than a quarter of the volume achieved on Uniswap pools comes from transactions made via the protocol's interface. The rest is mainly generated by aggregators that optimise the execution of transactions based on the most attractive pools.
A possible solution would be a dynamic fee system, with a "fee switch" activated only when a pool is more attractive than the rest of the market.
>> Read also: Uniswap, Aave, Sky: What strategies for the "OGs of DeFi"?
Aave (AAVE) +25%
Liquidity on the Aave protocol is growing significantly, thanks in particular to the integration of separate markets. These are attracting users wishing to use leverage on their liquid staking and restaking tokens.
Also, the World Libertify project, of which Trump is an ambassador, plans to develop on a separate market within Aave. However, the project is struggling to meet its fundraising targets.
Future updates to the Aave protocol aim to remunerate AAVE holders with a portion of the protocol's profits, paid in AAVE tokens. The project thus presents clearer plans for the remuneration of its token holders.
Read also: Aave vs Morpho: the great lending match
Lido (LDO) +22%
Growth in the number of ETH deposited on Lido has stagnated since early 2024, mainly due to the development of liquid restaking tokens that promise higher returns.
.png)
The protocol continues to innovate by opening up its operation to "solo stakers" and reducing the barriers to entry to run an Ethereum node.
Lido could potentially benefit from the introduction of staked ETH ETFs, previously refused by the US regulator. The protocol could also consider redistributing some of its revenue.
>> Read also: Fundamental analysis of Lido
The other tokens
DOGE has also seen a significant price rise. Elon Musk, a fervent supporter of the project, is also very close to Donald Trump.
>> Read also: Fundamental analysis of Dogecoin
Other tokens such as SOL and XRP could benefit from more flexible legislation, making it easier to authorise ETFs backed by them.
As yet, no new legislation is planned. These price fluctuations mainly reflect the hope that DeFi projects will benefit from a clearer regulatory framework.
>> Read also : Solana's fundamental analysis
This article is not publically available
Looking to access truly actionable research?
Subscribe to our weekly briefing
.png)
