In the crypto market performance over the past year, Ethereum has been overshadowed by Bitcoin and other public chain coins, including coins such as Sui, which has shown a stunning 434.1% increase, and Solana has also achieved 84.2% growth, far exceeding ETH, which has left Ethereum supporters and holders relatively depressed recently.
However, many crypto currency experts point out that the election of former U.S. President Trump as the new president may bring favorable policies, injecting new growth momentum into ETH.
Changing regulatory environment, reviving legitimate crypto projects
Saul Rejwan, managing partner of crypto venture capital firm Masterkey, publicly stated that Trump's announcement that he will nominate former SEC commissioner Paul Atkins as the next SEC chairman could fundamentally change the regulatory environment. The SEC under the leadership of Gary Gensler has taken a tough stance on DeFi projects, including investigating major projects like Uniswap, which has restricted the development of the Ethereum ecosystem.
In addition, the new government may also gradually phase out the "VC coin worthless theory" because under the previous regulatory environment, many venture capital institutions' investments in blockchain infrastructure and innovative projects were often overlooked, while the market was once obsessed with speculative assets such as meme coins that lacked practicality.
Rejwan pointed out that Trump's crypto-friendly stance and the potentially more friendly SEC policy will change this phenomenon, and legitimate projects will no longer need to worry about receiving Wells notices from the SEC one after another, but will instead receive more support from regulatory agencies.
Staking rewards ETF may become a new engine for capital inflow into Ethereum
On the other hand, under Trump's new administration, the SEC may approve more ETF applications targeting Ethereum, especially those with staking rewards functionality. This move not only can bring higher capital inflows to Ethereum, but also enhance its attractiveness as an asset. According to Wall Street analyst Bernstein, staking rewards may rise to 4%-5%, which will be more attractive to institutional investors given the backdrop of the Federal Reserve's interest rate cuts.
Trump family's investment soft endorsement
In addition, the Trump family's decentralized finance project "World Liberty Financial" has already invested a large amount of capital in the Ethereum ecosystem, purchasing core assets such as ETH, Chainlink, Aave, and ONDO. Crypto lawyer Robert Nupp believes that this action is not only one of the biggest "soft" endorsements of the Ethereum ecosystem, but will also stimulate more capital to focus on the future development of this blockchain network.
