Which Cryptocurrency Sectors Are Hot — and Which Are Not

The new year started with a sensation of the cryptocurrency market. During the era of President Donald Trump’s plan, America will become “the capital of encryption in the world.” This means canceling the organization of the encryption market, promoting innovative uses of Blockchain technology within the financial markets, and it becomes a Bitcoin (Crypto: BTC) Great power.

These promises have been often kept. The White House hosted to the top of the encryption on March 7. But the weakening of the wider macro economy – in the form of a tariff and fears of stagnation – sent encryption markets. Current currencies in all fields, so it is difficult to know what is hot, and what is otherwise. So let’s take a closer look at Trump’s main priorities for encryption.

The three most heated encryption sectors at the present time are decentralized financing (Defi), the asset symbol in the real world (RWA), and Stablecoins. The easiest way to see this is to examine the World Liberty Financial, a Trump encrypted company that uses the brand line, “forming a new era of financing”. It continued to buy a very advertising encryption before the opening as a show to support the Trump encryption plan.

Currently, some of the largest holdings in the world are financial freedom ethereum (Crypto: eth)and ChainLink (Crypto: Link)and Oondoand AAVEAnd Ethina. The company also owns two stablecoins: pregnancy and USDC. All these holdings, in one way or another, reflect a basic idea of ​​Trump’s encryption plan: creating new links between the world of traditional financing and the world of decentralized financing.

The decentralized financing truly indicates a traditional financial system on Blockcha bars. Once you get Blockchain Layer-1 like Ethereum, it is possible to build on it. You can create new decentralized non -digital assets exchanges. You can create new ways to borrow and earn money. You can create an enormous value by reducing shortcomings in the modern financial system.

RWA is one of the most important trends in Wall Street at the present time, and it is supported by adult asset managers such as Blackrock. The distinctive symbol indicates the transformation of traditional assets (such as stocks and bonds) to digital assets that can be traded on Blockchain. Once you do this, you can create new competencies and open markets for new participants. For example, it has now become possible to distinguish very ungaling assets (such as private stocks and real estate) and put them all on Blockchain in the form of trading encryption codes.

It may be difficult to believe that stablecoins is hot now. After all, they are linked from 1 to 1 to the US dollar, so they are supposed to trade for one dollar at all times. You can not really speculate in Stablecoins (unless you are betting to lose their connection), and many investors may not want to get an asset like USDC or Tether trading for one dollar in one day.

But as Coinbase Global He recently indicated that Stablecoins may end up being the largest story of this year for Crypto. Trump Checkle calls for the use of Stablecoins as a way to ensure that the US dollar remains the best backup currency in the world.

To buy Stablecoins, you need dollars. Now, dollars in Stablecoins flow at an unprecedented rate. The best five stablecoins now has a total market value of more than $ 200 billion.

Three sectors of non -eloquent cryptocurrencies include Meme and AI (AI) and anything related to applications facing Blockchain technology (such as games, web3, and micab).

Do you remember the last gathering in the bull’s encryption market? Metal currency rates such as Dokwin and Sheba Eno It was rising in the value. Celebrities were spending millions of dollars to buy non -explosive symbols (NFTS) from the Ape Ape Yacht Club group. People were buying digital real estate in Metaverse as a way to quickly get rich.

Unfortunately (or fortunately, depending on your point of view), this type of speculative butter is unlikely to return any time soon. New Trump official Meme Coin decreased by 85 % of its highest levels, and no one buys expensive NFTS when the recession threatening waving on the horizon, early attempts to combine artificial intelligence and encryption-such as creating a completely new position for the White House AI and Crypto CZAR-has been very low so far.

I am still not convinced that the coding sectors facing the consumer are not in their favor? Simply search for pictures of the White House encryption summit that occurred on March 7. The event appears unlike any encryption event I have seen at all. One distinctive image from New York Times It looks like an official meeting from the Wall Street: Participants are wearing dark commercial suits and ties, clapping politely, and sitting on a long table under the golden chandelier and the watchful eye of Blemin Lincoln.

At this stage, you may ask: Why did you not mention Bitcoin? For one, Bitcoin is not a sector, it is one of the assets. Secondly, the Trump plan is primarily focused on economic competitiveness and financial innovation. The declared goal is to “make America great again.”

To the extent that Bitcoin can help achieve this goal, it is important. For example, if it can help strengthen the US dollar, increase the investor confidence in the American economy, or help pay the debt burden of $ 36 trillion, or bring new jobs to America, this is important.

At the present time, it may be important to understand how the traditional financing worlds and Blockchain are suitable for together, and what this means for the financial future of America. I am convinced that this is the key to know the cryptocurrencies under the radar that are the best investment opportunities at the present time.

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Dominique Baslto has parking in bitcoin, chainlink, and ethereum. Motley Fool has positions in Bitcoin, Chainlink, Coinbase Global and Ethereum. Motley Fool has a disclosure policy.

Trump Plan for encryption: Any hot cryptocurrency sectors – which were not originally published by Motley Fool