Dogecoin. Representative image.
Credit: @Jeremyybtc
By Ryan Weeks and Suvashree Ghosh
A bevy of smaller cryptocurrencies outperformed market-leader Bitcoin in recent days as enthusiasm about the sector’s prospects under President-elect Donald Trump encouraged a wave of speculative bets.
Among the leaders are Shiba Inu-themed digital token Dogecoin, a meme-crowd darling promoted by Trump supporter Elon Musk. Also known as Doge, the coin is up about 50% in the past five days, according to data compiled by Bloomberg.
At the top of the pile is ADA from the Cardano blockchain, up more than 60% over the period apparently because the network’s founder Charles Hoskinson in a podcast discussed plans to work with lawmakers in Washington.
These and other so-called “altcoins,” including tokens linked to blockchain platforms Polygon, Cosmos, Solana and Algorand, have posted gains exceeding Bitcoin’s five-day climb of about 7% to a record high.
“A rising tide lifts all boats and the boom in Bitcoin rippled on to the alts relatively quickly,” said Caroline Bowler, chief executive officer of digital-asset exchange BTC Markets Pty. “The sector in its entirety is expected to be a net beneficiary of Trump’s administration.”
Big Spenders
The crypto industry spent heavily during US election campaigning to back candidates perceived to be friendly to its interests. Executives and investors now expect to reap the rewards in the form of a more accommodative regime under Trump, whose Republican Party is set to control Congress.
Trump pledged to fire Securities & Exchange Commission Chair Gary Gensler, the bete noire of digital assets because of his aggressive crackdown against alleged noncompliance with the agency’s rules. The president-elect also vowed to nurture US Bitcoin mining and establish a strategic stockpile for the token.
Credit: Bloomberg
Some investors are speculating that more coins, such as Solana’s SOL, will be allowed dedicated exchange-traded funds in the US, which has so far permitted the vehicles for Bitcoin and second-ranked Ether.
Traders for now aren’t asking tough questions about how quickly this agenda can be implemented or the feasibility of a strategic Bitcoin stockpile and expanded ETF universe.
It’s still “too early to tell how everything will shake out” in terms of regulation under Trump, venture capital company a16z crypto wrote in a blog. But there is now “a pathway for constructive engagement with regulatory agencies,” it said.