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The crypto industry has enjoyed an excellent start to 2025, and all signs are pointing towards this continuing with the Trump administration coming into power and implementing new measures to support tech and digital assets.
Trump stated during his election campaign that he was keen on transforming the US into the world’s crypto capital, as well as floating the idea of a Bitcoin reserve.
News of his victory saw crypto prices skyrocket, with Bitcoin enjoying record highs. As a decentralized alternative to fiat currencies, this had a knock-on effect around the world.
While this has caused a global crypto boom, he has also spoken of his intention to operate an ‘America first’ policy when it comes to crypto. This has seen the administration enter into discussions with key players including Solana.
This is great news for SOL and other cryptocurrencies that are active on the Solana blockchain including Solaxy. Solaxy is a new crypto project in the presale stage of its launch which offers a Layer 2 solution and is built on Solana (source: https://solaxy.io/home). Amidst the latest events, such projects have more chances to thrive in a welcoming political climate. The installation of an AI and crypto czar David Sacks and plans to install an advisory council to help create a regulatory framework should also boost market longevity.
The creation of a comprehensive framework will help to provide clarity and ensure continued growth. This comes on the back of the recent MiCA (Markets in Crypto-Assets) regulations being installed across the EU.
The MiCA regulations provide a uniform framework for all EU member nations, making it easier for crypto businesses to negotiate international markets across the 27 countries.
The adoption of crypto across different industries should help with stability across the established cryptocurrencies that are typically accepted, but the rise of stablecoins which are pegged to real-world assets like the dollar will also help consumer trends shift towards crypto use.
Another popular option in the crypto sphere that started out as a joke is the meme coin phenomenon. Dogecoin launched in 2013 and was based on the ‘Doge’ meme.
News that Donald and Melania Trump have both launched their own meme coins in a move that should capitalize on their current popularity. The gaming industry is another that has entered the market with crypto gaming coins showing great potential.
However, as with any investment opportunity, consumers must be aware of the risks and there are no guarantees that any new crypto will succeed or existing options maintain their high value.
The threat of rising interest rates, consistent inflation, and geopolitical tensions can all have an adverse effect on all asset classes. The dramatic rise in the value of Bitcoin and other cryptocurrencies following Trump’s election win has begun to level out, and even a drop in value will still see many significantly higher values than they were pre-election results.
The volatility of crypto is something that still makes investors wary and there is always the potential that negative stories, including the recent HAWKTUAH coin fiasco, could have an adverse effect on emerging projects. However, strong market confidence looks like values should remain high in the short term.