The election of Donald Trump signifies a transformative period for digital assets, marked by enhanced regulatory transparency and increased market activities. The pivotal inquiry remains whether this transformation is enduring or simply a fleeting reaction to the shifting political landscape.
According to CCData’s latest Exchange Review report, the total of spot and derivatives trading volumes soared to a new record in 2024, with figures hitting $75 trillion, surpassing last’s year’s mark of $64 trillion. With the election fostering increased speculation and trading activity, both November and December set sequential monthly trading records at $10.51 trillion and $11.31 trillion, respectively. The average trading volume throughout 2024, which was notably the most active year on record, stood at $6.4 trillion.
On inauguration day, the total market capitalization of stablecoins achieved an unprecedented peak of $210.1 billion, reflecting a year-to-date growth of 3.3%, attributed to improved liquidity across both centralized and decentralized platforms, facilitating a significant influx of recent trading activity.
Digital assets affiliated with the U.S., such as XRP, SOL, XLM, and ALGO, have experienced remarkable appreciation following the election. The favorable regulatory environment and prospective advantageous conditions for domestic assets have fueled investor excitement and speculation, resulting in a staggering increase of over 360% in the associated asset basket, significantly outperforming general market trends. This growth signifies a drastic shift from the previous administration’s stringent regulatory approach, which scrutinized these assets due to their classification as securities by the SEC.
The sustainability of this exceptional growth is contingent upon how the new Trump administration fulfills its commitments toward establishing a Strategic Bitcoin Reserve, promoting domestic mining, and addressing related concerns. Additionally, the broader cryptocurrency market could experience a beneficial impact as it enters an expansionary phase of the historical bitcoin cycle, which is typically characterized by rapid market growth in its final year.
Observing how this new administration influences the cryptocurrency market dynamics, traditionally categorized by established cycles, will be of great interest moving forward.
