🚀 DeFi Tokens Surge 20% on Trump’s Anticipated Election Win
posted 7 Nov 2024
Several DeFi sector cryptocurrencies posted daily gains exceeding 20% after Donald Trump appeared as the clear winner of the U.S. presidential election on November 6. Investors are optimistic that the new White House administration will foster a more favorable climate between regulators and the crypto industry.
The trigger came from Uniswap’s October 10 announcement of its new L2 solution, Unichain. Following the network’s official launch, a portion of the collected fees will be distributed among UNI holders, enhancing the token’s investment appeal.
We explored this in detail in our article, “What is Unichain: Uniswap’s L2 Blockchain and Its Architecture.” Notably, our identified support level of $7.072 for UNI yielded a 37% return.
According to Charlie Sherry, an analyst at BTC Markets, DeFi tokens were previously seen by the community as offering limited value beyond voting rights in DAOs. However, he suggests that they may soon provide real benefits, such as using collected fees to reward token holders.
Previously, regulatory concerns prevented projects from implementing such features, as project leaders feared the SEC or other authorities might deem these actions unlawful.
Following Trump’s victory, these concerns have lessened, with expectations that the new administration will likely adopt a more favorable stance toward the crypto industry.
One standout performer was UNI, the native token of the Uniswap DEX. Between November 6 and 7, UNI’s price rose by over 35%.
The trigger came from Uniswap’s October 10 announcement of its new L2 solution, Unichain. Following the network’s official launch, a portion of the collected fees will be distributed among UNI holders, enhancing the token’s investment appeal.
We explored this in detail in our article, “What is Unichain: Uniswap’s L2 Blockchain and Its Architecture.” Notably, our identified support level of $7.072 for UNI yielded a 37% return.
UNI Price Increased by 37% After Testing Support at $7.072. Source: tradingview.com
Trump’s victory also drove gains in Lido DAO (LDO), Ethena (ENA), Aave (AAVE), and Maker (MKR), with each of these DeFi tokens appreciating by more than 20%.
According to Charlie Sherry, an analyst at BTC Markets, DeFi tokens were previously seen by the community as offering limited value beyond voting rights in DAOs. However, he suggests that they may soon provide real benefits, such as using collected fees to reward token holders.
Previously, regulatory concerns prevented projects from implementing such features, as project leaders feared the SEC or other authorities might deem these actions unlawful.
Following Trump’s victory, these concerns have lessened, with expectations that the new administration will likely adopt a more favorable stance toward the crypto industry.
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