Ether (ETH) has surged by 10%, reaching above $2,800 for the first time since August, driven by renewed optimism in decentralized finance (DeFi) following Donald Trump’s election victory. This upward movement comes after months of range-bound trading in ETH, with prices previously fluctuating between $2,300 and $2,600 despite significant rallies in bitcoin (BTC).
Trump’s pro-crypto stance appears to be energizing DeFi investors, fueling bullish sentiment across the market
During his campaign, Trump promised to transform the U.S. into a global leader in cryptocurrency. Investors are now anticipating policies that may relax regulatory constraints on DeFi projects, enabling these platforms to operate more freely within the U.S. market. Arthur Cheong, co-founder of DeFiance Capital, voiced optimism on social media, calling this a “DeFi Renaissance” and suggesting that a Trump administration could usher in an era of “innovation and capitalism.”
This sentiment aligns with recent increases in user metrics and capital flowing into DeFi applications, including foundational projects like Aave. Cheong highlighted Aave’s impressive revenue growth, surpassing its 2021 bull market peak, signaling that DeFi may be entering a productive phase primed for long-term expansion.
Ethereum educator @sassal0x echoed Cheong’s enthusiasm, suggesting that Trump’s policies could open doors for DeFi innovations such as token fee switches, features that would provide DeFi projects with sustainable revenue streams. The Trump administration is expected to introduce guidelines to simplify compliance for DeFi projects, possibly defining certain tokens as commodities rather than securities—potentially alleviating concerns around regulatory scrutiny from the Securities and Exchange Commission (SEC).
Market sentiment has swiftly responded to Trump’s victory. According to analytics firm Kaito, DeFi social media sentiment surged in the past 24 hours, outpacing trending sectors like artificial intelligence and meme coins.
With Trump set to assume office, DeFi investors are eyeing a potential regulatory environment that could foster growth and innovation within the crypto space.
