DeFi Made Great Again
The promise of favorable crypto regulation after a Republican sweep has reinvigorated the animal spirits for DeFi. We discuss what this shift will look like and what tokens to consider for the brewing DeFi renaissance.
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TLDR
- Trump's election is great news for altcoins, particularly DeFi. It has reinvigorated ETH and DeFi tokens after a prolonged underperformance marked by intense regulatory pressure.
- A Republican-controlled government under Trump promises more supportive crypto regulations, significantly benefiting DeFi and attracting institutional interest.
- Capital is returning to DeFi, as seen via growth in stablecoin market cap and DeFi TVL.
- Falling interest rates create a favorable environment for DeFi, due to attractive yield premiums and lowered capital costs, driving further ecosystem expansion.
- Enhanced DeFi UX, including better wallets, on- and off-ramps, trading terminals, and trading bots integrated into Web2 platforms, attracts both institutional and retail participants.
- We consider some key tokens that stand to run with the DeFi renaissance.
