As Donald Trump is almost certain to become the next President of the United States, the decentralized finance (DeFi) sector has performed exceptionally well in the market, with the expectation that the new government will bring a more friendly regulatory environment.
According to data from CoinGecko, the decentralized finance (DeFi) sector has risen by 16% in the past 24 hours, with the leading decentralized exchange Uniswap's UNI token seeing a maximum gain of nearly 35% in the past two days, and the liquid staking protocol Lido's LDO token experiencing a surge of up to 49%.
The decentralized stablecoin protocol Ethena's ENA has also seen a remarkable rise, with a gain of 50% in the past two days, which may be partly due to the governance proposal put forward by the market maker Wintermute. The lending protocol Aave's AAVE token has also seen a gain of nearly 40%, which may be partly due to the proposal by the crypto project supported by Trump, World Liberty Financial, to develop using Aave V3. Raydium, the Solana ecosystem exchange, has also performed well, with its RAY token seeing a gain of around 45%.
DeFi is expected to thrive under Trump's presidency
With voters electing 261 pro-crypto House representatives, the prospects for DeFi's revival in the United States are improving. Investment firm Bernstein said on Thursday that the election results should improve the regulatory clarity for digital assets, and that the Securities and Exchange Commission (SEC) and the Senate Banking Committee are expected to be more crypto-friendly under a Trump presidency and a Republican-controlled Senate.
Coinbase CEO Brian Armstrong also stated on the social platform X: "Crypto voters crossed party lines and made their voices heard clearly in key elections across the country. Americans are particularly passionate about crypto and want clear rules 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 stated that Trump's victory increases the likelihood of a true and sustained revival of DeFi, with the potential for user numbers to increase tenfold, as DeFi is more likely to benefit from less arbitrary regulation in the United States compared to other areas of cryptocurrency.
