Ethereum, the second-largest cryptocurrency by market capitalization, is expected to become an increasingly notable asset this year due to the 'Trump effect,' according to discussions in the global cryptocurrency industry.
According to the cryptocurrency industry on the 14th, the decentralized finance (DeFi) protocol D-Live forecasts that Ethereum could rise to $12,000 (approximately 17.66 million won) this year due to the 'Trump effect.' Given that Ethereum is currently trading around $3,200 (approximately 4.7 million won), that would represent a significant increase.
The rising outlook for Ethereum is attributed not only to Trump but also to his son and the Trump family’s direct and indirect investments in Ethereum. The cryptocurrency project 'World Liberty,' supported by the Trump family, recently purchased an additional $5 million (approximately 735.6 million won) of Ethereum amid a downturn that saw Ethereum fall to $3,100 (approximately 4.56 million won). World Liberty's holdings of Ethereum have increased to $50 million (approximately 735.6 million won).
For this reason, as the second Trump administration approaches, Ethereum is categorized as a so-called 'Trump theme coin.' The fact that it is led by the Trump family has enhanced its investment appeal. There are projections that this will serve as a favorable factor for Ethereum for the time being.
Moreover, ahead of the launch of the second Trump administration, Trump has been appointing cryptocurrency-friendly individuals to positions at the U.S. Securities and Exchange Commission (SEC) and other regulatory bodies. Recently, Trump nominated Paul Atkins, a pro-cryptocurrency businessman, as SEC Chairperson. It is also expected that a pro-cryptocurrency individual will be newly appointed as Chairperson of the Commodity Futures Trading Commission (CFTC), the most important regulatory authority alongside the SEC.
With Atkins' nomination, there are expectations that the regulatory items for Ethereum spot exchange-traded funds (ETFs) may change. Under the previous SEC Chairperson Gary Gensler, the developer of the Ethereum-based cryptocurrency wallet MetaMask, ConsenSys, was prosecuted for securities law violations. Additionally, the attempt to block transactions involving Ethereum spot ETFs that included staking has been criticized for adversely affecting the development of the Ethereum ecosystem.
A spokesperson from the cryptocurrency industry noted, 'Now that Trump has been elected and his close-knit family is closely tied to Ethereum projects, the rise of Ethereum during his term is a given,' adding, 'However, there may be fluctuations depending on the political evaluation.'
Kim Byung-jun from the Research Institute Dispred commented, 'It is still early to assess the positive impact on Ethereum considering that the structure and function of the World Liberty Financial project have not been specifically disclosed.' However, he stated, 'If there is a relaxation of the SEC's regulations on security tokens after the launch of the Trump administration, it is expected that tokens from Ethereum-based DeFi protocols could secure various utilities.' He added, 'This is precisely the factor that could have the most positive impact of the Trump administration on the Ethereum ecosystem at this point.'