Trump's Win, Bitcoin's Highs: Could Altcoins Be Next In Line For Gains?
Bitcoin’s yesterday surge to the new all-time high of $89,000 is sparking a wave of uncontainable excitement across the now $3 trillion-value cryptocurrency market and fuelled more speculation about a potential "alt season" as alternative cryptocurrencies gain renewed momentum in the wake of Donald Trump’s election victory.
Historically, the altcoin market has been characterised by volatility and high-risk opportunities, often driven more by speculative hype than by fundamental value. However, a fundamental change appears to be underway. With attention increasingly focused on altcoins that support decentralised finance (DeFi), Web3 infrastructure, and blockchain-based applications, investors - both retail and institutional - are re-evaluating altcoins in light of the evolving regulatory and economic landscape that could emerge under a more crypto-friendly U.S. administration.
Pro-Crypto Agenda Propels Altcoin Market Expansion
Trump’s re-election, along with a pro-crypto Congress, has reinvigorated optimism throughout the crypto market, especially for altcoins that have the potential to power the decentralised financial systems of the future. Major altcoins like Ethereum, Solana, and ADA, which serve as foundational platforms for a wide range of blockchain applications, have seen significant gains in the days following the election. Ethereum, for example, rose over 30% within a single week as investors anticipated regulatory changes that could open pathways for broader adoption and institutional support. Earlier this year, SOL briefly touched the $200 mark thanks to a booming memecoin market, only to lose momentum as the year unfolded. Now, with a resurgence in market enthusiasm following Trump’s election victory, SOL has reached $214 for the first time since 2021.
Trump’s promises to ease regulatory pressure on crypto markets, remove SEC Chair Gary Gensler, and introduce policies that support innovation have raised expectations for DeFi projects that have struggled under the current U.S. regulatory environment. Altcoins central to DeFi - particularly those that power decentralised applications (dApps) on networks like Ethereum - could benefit greatly from a friendlier regulatory climate. Such policies could unlock new avenues for institutional involvement, potentially legitimising these assets within the larger financial system. To add to the momentum, Cardano founder Charles Hoskinson has expressed his intent to actively shape U.S. crypto policy under Trump’s administration, with speculation mounting that he may even assume an advisory role. In this environment, altcoins linked to DeFi could transcend their speculative origins to evolve into crucial building blocks of a financial system that prioritises user control and decentralised access over centralised authority. According to Arkham Intelligence, the 47th President of the United States himself currently owns $5.3 million in crypto assets, with his Top 3 being ETH, wETH, and TRUMP.
Donald Trump's crypto wallet breakdown. Source: Arkham Intelligence
New Memecoin Mania Driven By Retail Excitement
The election results have not only boosted interest in established altcoins but have also reignited enthusiasm for speculative tokens, particularly meme coins like Dogecoin, Shiba Inu, and Floki Inu. Driven by social media hype and endorsements from figures like Elon Musk, these tokens have seen renewed attention and significant price gains in the wake of Trump’s victory. Dogecoin, in particular, is surging at high speed and thereby flipped XRP on November 10 and USDC on November 11 to become the sixth-largest cryptocurrency by market capitalisation with a 24H increase of more than 40%. Retail traders have embraced this moment as a unique opportunity to leverage political momentum and ride the wave of optimism sweeping across the crypto market.
Dogecoin is now the 6th largest crypto. Source: CoinMarketCap
Yet, the appeal of memecoins goes beyond mere speculation. With a potentially more lenient regulatory environment under Trump’s administration, these tokens may be able to develop beyond their initial novelty status. Developers and communities supporting memecoins are exploring ways to integrate them into broader applications to turn them into more functional assets within a decentralised ecosystem. For retail investors, memecoins represent a democratic, community-driven element within the crypto world that is highly accessible and often symbolic of the broader movement towards financial inclusivity and innovation. The excitement surrounding these tokens reflects a distinct layer of the crypto market, where retail investors find renewed confidence to engage with high-risk, high-reward assets in a politically supportive climate.
Institutional Investors Drive A Mature Alt Season
Unlike previous alt seasons that were driven primarily by retail speculation, this cycle brings a new dimension with substantial institutional backing. Major asset managers, including BlackRock, have expanded their crypto portfolios to include Ethereum-based assets and other altcoins as part of their diversification strategies. BlackRock’s involvement, in particular, has shifted perceptions of the altcoin market, which marks a transition of their value from speculative tokens to assets that can hold strategic value within a diversified investment portfolio. Ethereum has seen a significant uptick in demand for options and futures, with investors expecting the new administration to implement regulatory changes that could foster blockchain innovation.
The institutional embrace of altcoins like Ethereum signals a maturation of the market. These assets are no longer viewed solely as high-risk ventures but are increasingly considered vital components of the digital economy. Altcoins connected to DeFi, gaming, and NFTs are emerging as essential participants in an interconnected economic landscape. For institutions, these assets offer exposure to the cutting edge of financial technology, and their adoption reflects a shift in how digital assets are perceived and utilised. This new wave of institutional support for altcoins suggests a move beyond speculation, as these assets gain legitimacy and utility in mainstream financial frameworks.
Let's Envision A New Digital Economy With Altcoins
The implications of a Trump-led administration with a supportive stance on cryptocurrency could be transformative, not only for Bitcoin but for the entire spectrum of altcoins supporting DeFi, Web3, and other blockchain initiatives. Should Trump’s campaign promises of regulatory reform come to fruition, altcoins may continue their upward trend to carve out a distinct role in the financial system. Altcoins tied to DeFi, gaming, and NFTs could be positioned at the forefront of an economy that values decentralisation and digital innovation.
In this scenario, altcoins would evolve from high-risk investments into indispensable assets within a digital financial framework that empowers both individuals and institutions. The market’s growing acceptance of altcoins signifies a broader evolution in the crypto space, where these assets have the potential to become cornerstones of a decentralised financial network. Trump’s administration could play a critical role in advancing this transformation by removing regulatory barriers, fostering an environment conducive to innovation, and encouraging the integration of blockchain technology into various economic sectors.
For now, the crypto community and investors alike are watching closely, as the market anticipates steps that could reshape the role of altcoins in the digital economy. The policies and decisions made in the near term may define not only the growth trajectory of altcoins but also their potential to serve as foundational elements within the financial systems of tomorrow.
Disclaimer: The opinions expressed in this article are for informational purposes only. This article does not constitute an endorsement of any of the products and services discussed or investment, financial, or trading advice. Qualified professionals should be consulted prior to making financial decisions.
