The “Trump Effect” strikes again: Will DeFi, AI and altcoins usher in policy dividends?

Written by:Biteye core contributor viee

Editor: Biteye core contributor viee

Yesterday (January 23, 2025) Trump signed a high-profile executive order at the White House, officially announcing that the United States will increase policy support in the fields of artificial intelligence (AI) and digital cryptocurrency. This not only means that Trump intends to promote the United States to take the lead in the global AI competition, but also releases a positive signal for the cryptocurrency field.

Compared with the Biden administration's regulatory thinking, Trump's drastic policies may bring a long-lost spring to projects that were originally shrouded in the shadow of regulation. From DeFi to AI to MEME currency, can these tracks usher in a new round of explosion driven by the "Trump Effect"? Can he catch the market off guard like he did last time when he led the “$Trump currency wave”?

In this article, Biteye has sorted out several key tracks and related tokens that may benefit from it.

1. DeFi: Compliance accelerates mainstreaming

The DeFi project World Liberty Financial (@worldlibertyfi) launched by the Trump family has undoubtedly injected a boost into the DeFi track. The WLFI project is not a hasty project, but is operated within a regulatory framework with adequate legal and compliance preparations, especially in terms of compliance. In other words, in addition to showing high optimism for DeFi, WLFI may also convey the foreshadowing of the loose regulatory environment for the encryption industry after Trump came to power.

In addition, according to the new DeFi tax regulations proposed by the US Taxation Bureau in December 2024, it can be speculated that more systematic DeFi regulations may be introduced in 2025, and the compliance of the DeFi industry may become a crypto development trend in 2025. Promoting the development of the DeFi industry based on the establishment of a compliance framework, coupled with Trump's loosening of regulations on the encryption industry, may push more traditional financial institutions to get involved in the DeFi field. Currently, $LINK and $AVAX are the two tokens with the highest market value in the DeFi track, and are also tokens held by WLFI. They may usher in new opportunities in this wave of policy adjustments.

2. AI: Trump threatens to make the United States the world capital of

artificial intelligence

In his inaugural speech, Trump mentioned that he would increase investment and development in the field of artificial intelligence (AI), especially in decentralized artificial intelligence infrastructure. On Tuesday, the White House just announced that it would cooperate with technology giants such as Oracle, OpenAI, and SoftBank to launch a US$500 billion artificial intelligence infrastructure project. On Thursday, Trump signed an executive order related to the encryption industry and artificial intelligence, setting a 180-day deadline to formulate an "Artificial Intelligence Action Plan" and manage digital assets (including stablecoins). ) and evaluate the creation of a strategic national digital asset reserve. The executive order also banned the central bank digital currency (CBDC), which Trump believed would "threat the stability of the financial system, personal privacy, and the sovereignty of the United States."

Against this background, the potential of combining AI and encryption is particularly eye-catching, especially in the field of DeFi x AI (DeFAI), where decentralized AI applications and algorithmic trading are likely to receive more boost.

3. RWA & DePIN: tokens of real assets

The Trump family’s World Liberty Financial (@worldlibertyfi) is not only involved in the DeFi field, but also deployed RWA (real world assets) related tokens. For example, $ENA and $ONDO. Robinhood CEO Vlad Tenev and well-known cryptocurrency trader Andrew Kang both expressed optimism that Trump will accelerate the transfer of stocks, private companies and real-world assets (RWA) to the chain through tokenization after taking office. TGE's RWAFi concept project Plume Network has just announced that it was invited to Trump's inaugural ball.

In addition to RWA, Trump spoke at the Blockchain Association's annual gala last month, saying that real use cases like DePIN legalize cryptocurrencies and are on the priority list for legislation.

The above information has to make people think about what impact Trump will have on the RWA and DePIN tracks after taking office? In an environment of loose policies, we may be able to usher in a golden period of development.

4. Meme Coin and SOL Ecology: Re-Facing the Potential of “Copycat

Season”

The $TRUMP Meme coin launched by Trump created a market value of US$24 billion on its first day, ushering in a new wave of attention on the Meme currency track, and Web2 speculators trotted into the market overnight. The popularity of $TRUMP is a rare combination of politics and finance in the history of encryption. The "presidential currency issue" undoubtedly has far-reaching market impact.

In addition, the decision to deploy $TRUMP tokens on the Solana chain further strengthens the market recognition of the Solana ecosystem and may become a catalyst for the future development of Solana, which may have the following impacts:

• Increase capital inflow into the Solana ecosystem: Due to the high market value of $TRUMP and the influence of the Trump family, the Meme coin project on the Solana chain has attracted a lot of capital and market attention. This capital inflow may not only be limited to the Meme currency itself, but also drive more developers and project parties to choose Solana as their issuance and operating platform.

• May promote the approval of Solana ETF: Solana, as a representative of high-performance blockchain, has the basis for market acceptance. Trump's participation not only increases Solana's market exposure, but also contributes to its recognition in traditional financial markets, thus accelerating the approval process of Solana ETF.

• It may pave the way for the "Copycat Season": Meme coins, promoted by celebrities and political forces behind them, may trigger the emergence of more similar projects, absorb most of the liquidity on the chain, and may promote the next round of "Copycat Season" "arrival.

5. World Liberty holdings & U.S. local currency: The strongest

correlation with Trump

The correlation between these two tracks and Trump is relatively strong and needs no further elaboration. The current top ten tokens held by World Liberty are: $ETH, $wBTC, $STETH, $USDC, $TRX, $USDT, $AAVE, $LINK, $ENA, $ONDO. In addition, you can pay attention to the Trump Inauguration and Crypto Ball sponsorship projects, including TRON, Ripple, Anchorage, Kraken, Sui, MetaMask, Galaxy, Ondo (ONDO), Solana, Etoro, Uniswap, etc. and crypto listed companies Coinbase, MicroStrategy, Marathon Digital, Nano Labs, Exodus, Metaplanet, and more.

6. Summary

From DeFi to AI, from RWA tokenization to Meme coins, as the "crypto president", Trump's every move is challenging the traditional industry structure, and his encryption policies may push the encryption industry to a more advanced level in the next few years. Compliance and development in a more mature direction.

However, the real future of the encryption industry depends not only on short-term policy dividends, but also on the continuous innovation of its internal technology and the continuous advancement of compliance. Can Solana take this opportunity to break through the bottleneck? Can tracks such as DeFi and RWA be reborn within a regulatory framework? At the intersection of policy relaxation and technological innovation, how will crypto assets dance with the traditional financial system? We can foresee that the next few years will be a critical period for all these changes.