These five tokens have their own unique features, covering key areas such as value storage, smart contracts, high-performance blockchains, financial bridges, and future potential.
Author: 1912212.eth, Foresight News
On the evening of March 2nd, Trump once again added fuel to the dying crypto market. He announced on a social media platform that after years of suppression by the Biden administration, the US crypto reserves will elevate the status of this critical industry. This is why my digital asset executive order directs the presidential working group to advance a crypto strategy reserve including XRP, SOL, and ADA. I will ensure that the US becomes the world capital of Cryptocurrencies. We are making America great again!
Seemingly unsatisfied, just an hour later, Trump posted again stating that clearly BTC and ETH, as well as other valuable Altcoins, will be the core of the reserves. I also like Bitcoin and Ethereum!
Affected by this news, BTC surged from $85,000 to around $95,000, ETH from $2,200 to $2,550, SOL rebounded from $140 to around $180, ADA rose from $0.65 to a high of around $1.17, and XRP climbed from $2.2 to a high of $2.9999. Many Altcoins such as SUI, ENA, and ONDO also saw significant increases. The previously pessimistic and desperate market sentiment was instantly swept away.
In terms of contract data, the 24-hour liquidation across the network was $825 million, with $545 million in short positions liquidated.
From Doubt to Embrace, Trump Delivers on His Promise
As early as 2021, he had publicly criticized Bitcoin as a scam, believing it threatened the US dollar's hegemony. However, since his 2024 campaign, he has gradually shifted his stance and promised at the Bitcoin 2024 conference that if elected, he would retain all the federal government's Bitcoin holdings to create a "National Bitcoin Reserve". This statement not only implies that he has fulfilled this promise, but also expanded the scope to other mainstream Cryptocurrencies, demonstrating his re-recognition of the strategic value of digital assets.
Currently, the global Crypto market is in a volatile period. Although Trump's election initially sparked a wave of enthusiasm, the recent price decline has undermined investor confidence, especially with the Trump-themed Altcoin TRUMP, which enriched a few but also drained market sentiment, becoming a short-term high point in the Crypto market. Major Coins and meme Coins have started to decline, with Bitcoin even briefly falling below $80,000 recently. Against this backdrop, Trump's statement is like a shot in the arm, injecting new vitality into the market.
Crypto czar David Sacks wrote that "President Trump has announced a Crypto strategic reserve composed of Bitcoin and other top Cryptocurrencies. This is consistent with his first-week Executive Order 14178. President Trump is fulfilling his promise to make America the 'world capital of Cryptocurrencies'. More details will be unveiled at the White House Crypto Summit on March 7th.
Why Specifically These Ones?
Many investors are curious why the tokens announced for the strategic reserve are Bitcoin, Ethereum, Solana, XRP, and ADA, and not others.
Bitcoin: The Undisputed King
As the first Cryptocurrency, Bitcoin's position is unshakable. Its market cap has long maintained a share of over 40%, being seen as "digital gold". Trump's choice of BTC is not only due to its global recognition, but also its symbolic significance - the beginning of decentralized finance. Incorporating it into the strategic reserve demonstrates the US's emphasis on Crypto leadership, while also laying a solid foundation of trust for the reserve plan.
Coinbase co-founder and CEO Brian Armstrong commented on social media that in terms of asset allocation for the strategic reserve, Bitcoin is likely the best choice, as the successor to gold, Bitcoin has the simplest and clearest narrative.
Polymarket data shows that the market's bet on the probability of establishing a Bitcoin strategic reserve by 2025 has risen from 40% to over 60%.
Ethereum: The Foundation of Smart Contracts
Ethereum is another beacon in the blockchain world. As a pioneer of smart contracts, ETH supports multiple areas such as DeFi and Non-Fungible Tokens, with a total locked value exceeding $100 billion. Its large developer community and rich ecosystem make it the hub of blockchain innovation. Trump's choice of ETH shows his recognition of the potential for diversification of the Crypto economy, rather than just hoarding a single asset.
In early February this year, Trump's son Eric Trump had already shilled Ethereum, stating that it was the best time to increase Ethereum holdings.
Solana: The High-Performance L1 Representative
Solana has emerged with its high throughput and low transaction costs, capable of processing tens of thousands of transactions per second, far exceeding Bitcoin and Ethereum. Although it has been controversial in the past due to network stability issues, its technical advantages are undeniable. It has attracted a large influx of capital from 2024 to the present and has been the center of attention in the meme coin craze. The Trump-themed Altcoin TRUMP was launched on Solana. Trump's inclusion of Solana in the reserve shows a forward-looking layout for next-generation blockchain technology, aiming to seize the high ground of performance competition. Solana is currently the second largest public chain after Ethereum, with a market cap exceeding $86 billion.
XRP: The Cross-Border Payment Enabler
XRP, driven by Ripple, focuses on the cross-border payment field, with fast transaction speed and low fees, and has been adopted by hundreds of financial institutions globally. Although its lawsuit with the SEC has been controversial, its victory in 2023 has vindicated it. Trump's choice of XRP may be due to its role as a bridge between traditional finance and the Crypto world. On March 3rd, XRP's FDV reached $272.6 billion, surpassing Ethereum for the first time.
In February this year, Trump shared an article related to XRP on Truth Social on Tuesday. The article, published by CoinDesk in January, revealed that Ripple CEO Brad Garlinghouse saw growth in Ripple's business cooperation and hiring in the US after Trump's victory in the 2024 election.
Also this month, Nasdaq Stock Market, LLC submitted a proposed rule change to the SEC to list and trade shares of the CoinShares XRP ETF ("Trust"). B2BINPAY CEO Arthur Azizov said: "The XRP ETF is highly likely to be launched this year, with the specific timing depending on the resolution of the legal dispute with the SEC."
Cardano (ADA): The Academically-Driven Potential
Cardano is known for its academic research-driven development. While ADA's market cap is not as high as the previous ones, its applications in Africa and Southeast Asia are noteworthy. For example, Cardano is collaborating with the Ethiopian government to provide blockchain-based identity authentication for 5 million students, demonstrating its potential for financial inclusion. Trump's inclusion of it may be to showcase America's support for global financial inclusion, while also adding diversity and innovation to the reserve. Currently, ADA ranks 8th in market cap, exceeding $37 billion.
At the end of last year, Robinhood US re-listed ADA and XRP.
Conclusion
Among the many cryptocurrencies, why were popular coins like Doge and BNB not selected? Although Doge has the backing of Musk, its speculative nature is too strong and it lacks substantial technical support, making it difficult to bear the seriousness of national strategic reserves. While BNB is of great importance in the Binance ecosystem, its centralized tendency goes against the decentralized spirit of cryptocurrencies, and it is too dependent on a single platform. Furthermore, technical-oriented coins like Avalanche, although with promising potential, are still not as influential and mature as the five selected ones.
Trump's selection of BTC, ETH, SOL, XRP, and ADA as strategic reserves reflects his team's deep understanding of the diversification of cryptocurrencies. These five coins have their own characteristics, covering key areas such as value storage, smart contracts, high-performance blockchains, financial bridges, and future potential, forming a balanced crypto asset portfolio. This move not only has the potential to reshape the United States' position in the global digital economy, but also sets a confidence benchmark for the crypto industry.
In the future, as the reserve plan progresses, the status of these five cryptocurrencies may be further consolidated. For the coins that were not selected, this may be a signal to accelerate their innovation. Regardless, Trump's choice has opened a new door for the crypto world.
