With Trump (Donald Trump) almost certain to become the next President of the United States, the decentralized finance (DeFi) sector has performed excellently under market expectations that the new government will bring a friendlier regulatory environment.
According to CoinGecko data, the decentralized finance (DeFi) sector has generally risen by 16% in the past 24 hours, with the leading decentralized exchange Uniswap's UNI token seeing a maximum increase of nearly 35% in the last two days, while the liquidity staking protocol Lido's LDO once experienced a surge of up to 49%.
The decentralized stablecoin protocol Ethena's ENA also saw an astonishing rise, with an increase of 50% in the last two days; this surge may be partly influenced by the governance proposal put forward by market maker Wintermute. The lending protocol Aave's AAVE token has also seen an increase of nearly 40%, which may be partly due to the proposal from the Trump-backed crypto project World Liberty Financial to leverage Aave V3 for development. The RAY token from the Solana ecosystem exchange Raydium has also performed well, with an increase of about 45%.
DeFi is expected to revive under Trump’s administration
As voters have elected 261 House representatives who support cryptocurrency, the prospects for DeFi's revival in the US are improving. Brokerage firm Bernstein stated on Thursday that the results of the US elections should improve regulatory clarity for digital assets, and following Trump's victory in the presidential election and the Republican Party gaining control of the Senate, the Securities and Exchange Commission (SEC) and the Senate Banking Committee are expected to be more favorable towards crypto assets.
Coinbase CEO Brian Armstrong stated on the social media platform X: "Cryptocurrency voters have crossed party lines and clearly expressed their positions in important elections across the country. Americans are particularly concerned about cryptocurrency and want clear regulations for digital assets. We look forward to working with the new Congress to achieve this goal."
Rune Christensen, the founder of the lending protocol Sky (formerly Maker), also expressed that Trump's victory gives DeFi a greater chance of a genuine sustained revival, with user numbers expected to increase tenfold, as DeFi stands to benefit more from less arbitrary regulation in the US compared to other areas of cryptocurrency.
Trump winning makes a proper sustained DeFi Renaissance where user numbers 10x gets a lot more likely because DeFi benefits more than anything else in crypto from less regulatory capriciousness in the US
— Rune (@RuneKek) November 7, 2024
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