The new year started with a considerable fanfare for the cryptocurrency market. As part of President Donald Trump’s crypto plan, America would become “the world capital of cryptography”. This meant deregulation of the cryptography market, promote innovative uses for blockchain technology on the financial markets and become a Bitcoin (BTC 1.50%)) superpower.
These promises were mainly held. The White House even organized a crypto summit on March 7. But a wider macroeconomic weakness – in the form of prices and recession fears – sent cryptographic markets. Cryptocurrencies are broken at all levels, so it is difficult to say what is hot and what is not. So let’s take a closer look at Trump’s key priorities for the crypto.
Hot cryptocurrency sectors
The three hottest crypto sectors at the moment are decentralized finances (DEFI), the tokenization of active world (RWA) and stablecoins. The easiest way to see this is to examine the crypto portfolio of World Liberty Financial, the cryptographic company affiliated with Trump which uses the slogan, “shapes a new era of finance”. He made a very publicized cryptography purchasing frenzy before the inauguration as a demonstration of support for the Trump cryptography plan.
Currently, some of the largest assets of World Liberty Financial include Ethereum (Eth 1.62%)),, Chain link (LINK -1.69%)),, Ondo,, AaveAnd Ethena. The company also has two stablescoins: Attached And USDC. All these participations, in one way or another, reflect a central idea of Trump’s cryptographic plan: to create new links between the world of traditional finance and the world of decentralized finance.
Decentralized finance really refers to the implementation of the traditional financial system on blockchain rails. Once you have a layer 1 blockchain like Ethereum, it is possible to build it. You can create new decentralized exchanges to negotiate digital assets. You can create new ways to borrow and earn money. And you can create enormous value by reducing the ineffectiveness of the modern financial system.
The real token of the world (RWA) is one of the warmest trends in Wall Street at the moment, and it is supported by the best active managers such as Blackrock. Tokenization refers to the transformation of traditional assets (such as shares and obligations) into digital assets which can be negotiated on blockchain. Once you have done this, you can create new efficiency and open markets to new participants. For example, it is now possible to tokensinate very illiquid assets (such as investment capital and real estate) and put everything on the blockchain in the form of negotiable cryptographic tokens.
Image source: Getty Images.
It might be difficult to believe that stablecoins are hot at the moment. After all, they are set from 1 to 1 to the US dollar, so they are supposed to exchange $ 1 at any time. You really can’t speculate in Stablecoins (unless you bet they will lose their ankle), and many investors may not want to hold an asset like USDC or Tether who is negotiated for 1 day and day.
But as Global Coinbase He recently stressed that stablecoins could end up being the biggest story of the year for Crypto. The Crypto Trump plan calls for the use of stablecoins as a means of ensuring that the US dollar remains the best reserve currency in the world.
To buy stablecoins, you need dollars. And right now, dollars are flocking into stablecoins at an unprecedented rate. The first five Stablecoins now have total market capitalization of more than $ 200 billion.
Cryptocurrency sectors not so hot
Three cryptocurrency sectors not so hot include coins, artificial intelligence (AI) and everything related to the applications oriented consumers of blockchain technology (such as game, web3 and metavers).
Remember the latest Rally of the Haussier Crypto market? Price of coins such as Mastiff And Shiba Inu soared in value. Celebrities spent millions of dollars to buy non -budgetary tokens (NFTS) at the APE Yacht Club collection. And people bought digital real estate in Metaversse as a way to become rich quickly.
Unfortunately (or fortunately, depending on your point of view), this type of speculative foam will probably not come back anytime soon. The new Official trump Even Coin is down approximately 85% of its peaks, nobody buys expensive NFT when the threat of recession is imminent, and the first attempts to combine AI and crypto – as by creating the brand new position of the White House AI and the Czar Crypto – have so far been very low.
You are still not convinced that consumer -oriented cryptographic sectors are disgrace? Just look for images from the top of the White House cryptography which took place on March 7. The event looks like any crypto event you have ever seen. An emblematic image of The New York Times It looks like an official meeting of the board of directors of Wall Street: the participants are dressed in costumes and dark business links, politely applauding and seated at a long dull table under a golden chandelier and the vigilant eye of Abraham Lincoln.
How does Bitcoin integrate into the overview?
At this point, you are probably wondering: why did you not mention Bitcoin? On the one hand, Bitcoin is not a sector, it is only one asset. And secondly, the Crypto Trump plan is mainly focused on economic competitiveness and financial innovation. The declared objective is to “make America again large”.
Insofar as Bitcoin can help achieve this goal is important. For example, if this can help strengthen the US dollar, strengthen investors’ confidence in the US economy, reimburse the debt burden of 36 billions of dollars in the country or provide new jobs in America, then it is important.
For the moment, however, it may be more important to understand how the worlds of traditional finance and blockchain finance adapt, and what it means for the financial future of America. I am convinced that this is the key to determining cryptocurrencies under the radar are the best investment opportunities at the moment.
