{"id":99078,"date":"2024-11-07T04:57:19","date_gmt":"2024-11-07T08:57:19","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=99078"},"modified":"2024-11-07T05:01:53","modified_gmt":"2024-11-07T09:01:53","slug":"defi-tokens-surge-30-amid-optimism","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/defi-tokens-surge-30-amid-optimism\/","title":{"rendered":"DeFi Tokens Surge 30% Amid Optimism for ‘Friendlier’ Landscape Under Trump"},"content":{"rendered":"\n

DeFi firms have been concerned about implementing “value accrual mechanisms” for their tokens under SEC supervision<\/a> \u2014 but that could\u00a0change with President-elect Donald Trump.<\/p>\n\n\n\n

\"DeFi<\/figure>\n\n\n\n

Decentralized finance (DeFi) tokens surged by over 30% as traders anticipate that the Trump administration will boost the \u201cinvestment appeal\u201d of holding \u201cutility\u201d tokens, per an industry analyst.<\/p>\n\n\n\n

Among the biggest gainers on November 6 and 7 was UNI, which spiked by more than 35% to a local high of $9.58, with Lido DAO, Ethena, AAVE, and Maker also rising over 20% from recent lows, according to CoinGecko data\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a>.<\/p>\n\n\n\n

Charlie Sherry, head of finance and crypto analyst at BTC Markets, explained to Cointelegraph, \u201cUntil recently, DeFi tokens have been largely labeled as \u2018useless governance tokens,\u2019 serving no value beyond voting on protocol changes.\u201d <\/p>\n\n\n\n

However, Sherry noted that recent buying activity suggests investors believe these protocols will eventually \u201cpass value back to the token through fees earned by the protocol.\u201d<\/p>\n\n\n\n

Sherry added that many DeFi protocols <\/a>have avoided implementing \u201cvalue accrual mechanisms\u201d due to concerns about potential SEC enforcement, citing the SEC\u2019s probe into Uniswap Labs as an example.<\/p>\n\n\n\n

Donald Trump won the U.S. presidency on November 6 in a landslide against Vice President Kamala Harris, which could prompt SEC Chair Gary Gensler to resign by December or January, according to 10x Research. <\/p>\n\n\n\n

This change has led to \u201cregulatory optimism,\u201d Sherry said, with \u201cmarkets now pricing in the anticipated regulatory shift, expecting a friendlier environment for DeFi projects and their tokens.\u201d<\/p>\n\n\n\n

\"DeFi
Top performing tokens over the last 24 hours. Source: CoinGecko<\/em><\/figcaption><\/figure>\n\n\n\n

Sherry elaborated that a \u201cfee switch\u201d proposal for lending protocol Aave would be a \u201csignificant step toward creating intrinsic value\u201d for AAVE tokenholders. <\/p>\n\n\n\n

Similarly, Uniswap\u2019s layer 2 solution Unichain will allocate a portion of its fees to UNI tokenholders, potentially turning UNI \u201cfrom a governance token into a utility asset,\u201d enhancing its appeal to investors.<\/p>\n\n\n\n

Protocols for LIDO, ENA, MKR, and Frax (FXS) may also adopt similar \u201cvalue-accruing\u201d changes, according to Sherry.<\/p>\n\n\n\n

Meanwhile, Markus Thielen, head of research at 10x Research, suggested that DeFi tokens likely rose as traders used a \u201cbuy the laggard\u201d strategy, focusing on assets that underperformed last year but may lead in the coming year.<\/p>\n\n\n\n

Thielen also mentioned speculation that BlackRock<\/a> might \u201cpromote its spot Ether exchange-traded fund more aggressively\u201d in 2025. <\/p>\n\n\n\n

He added that Ether could potentially reach $3,000 if it surpasses the $2,700 mark, as Ether is currently trading at $2,845, an 8.5% increase over the past 24 hours.<\/p>\n","protected":false},"excerpt":{"rendered":"

DeFi firms have been concerned about implementing “value accrual mechanisms” for their tokens under SEC supervision \u2014 but that could\u00a0change with President-elect Donald Trump. Decentralized finance (DeFi) tokens surged by over 30% as traders anticipate that the Trump administration will boost the \u201cinvestment appeal\u201d of holding \u201cutility\u201d tokens, per an industry analyst. Among the biggest […]<\/p>\n","protected":false},"author":56,"featured_media":99081,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[1104,12496,1920,11664,9652,143,973,21718],"class_list":["post-99078","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-aave","tag-donald-trump-2","tag-gary-gensler","tag-governance-token","tag-maker","tag-sec","tag-uniswap","tag-us-elections-2024"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2024\/11\/DeFi-Tokens-Surge-30-Amid-Optimism-for-Friendlier-Landscape-Under-Trump.webp","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/99078","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/56"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=99078"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/99078\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/99081"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=99078"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=99078"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=99078"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}