Trump's election drives the wave of encryption! 3 major tracks become the focus of explosion, will the industry usher in a super cycle?

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The recent victory of Trump has triggered a frenzy in the encryption currency market, and the price of Bitcoin also once broke through the $93K mark. Looking back to 2018, when BTC was only worth $3,000, the market has undergone huge changes. Faced with such drastic changes, encryption entrepreneurs shared their views on the future of the market.

Trump's policies are clear, helping Web3 practitioners usher in a super cycle

Many encryption companies have expressed that the series of policies and regulatory relaxations that Trump will promote in the future will greatly unleash the innovation potential of the encryption industry. Although the Biden administration has previously conducted a series of 'destructive' law enforcement attacks on the encryption industry, Arianna Simpson, a partner at a16z crypto, said that with the new administration taking office, encryption companies and related startups will have greater freedom and there will be a large number of new products emerging like mushrooms after rain.

Some industry insiders also expressed that after the future regulatory relaxation, entrepreneurs who jump out of traditional industries will be more willing to enter the cryptocurrency market, thereby driving market development. Currently, some industry players are aggressively expanding their investment teams and concentrating resources to embrace this 'super cycle' of the encryption market.

encryption AI, Decentralized Finance, and RWA have become the focus of explosion

Combining Cryptocurrency with AI and DeFi (Decentralized Finance) has also been favored by many venture capital institutions, and these technologies are believed to experience explosive growth in the coming years. Ed Roman, co-founder of the VC company Hack VC, stated that currently, the field of Crypto-AI is the most followed in the market.

Roman believes that the development of the Crypto-AI field largely depends on the health of the traditional Web2 AI field (OpenAI, Google), and views NVIDIA's performance and market performance as important indicators of the health of the Web2 AI, thus measuring the future development of Crypto-AI.

In addition, Decentralized Finance is also considered to be the next explosive area. Some industry players believe that Decentralized Finance is expected to surpass TradFi tools in terms of yield and efficiency, and to address the pain points of TradFi through efficient, transparent, and Decentralization characteristics.

It further points out that currently there are also TradFi institutions starting to use Decentralization exchange (DEX) as a medium to put real-world assets (RWA) on the chain. Regarding stablecoins and payment, some operators have indicated that the barriers between banks and encryption payments will be reduced and the popularity of stablecoins will be accelerated after Trump takes office.

The potential of consumer applications and infrastructure is huge, and the technology is still the subject of heated debate.

In the encryption currency market, 'the development of consumer applications and infrastructure' has become the core focus of investor follow. In the past, due to the regulatory pressure of the Biden administration, growth space has been compressed, but with policies gradually relaxing, explosive growth is expected in the future.

At the same time, there are divergent views on infrastructure investment. Some encryption operators are optimistic about the potential of restaking and zero knowledge (ZK), seeing these technologies as key elements for future infrastructure upgrades. However, others believe that as technological bottlenecks continue to be overcome, investment opportunities in this area may gradually decrease, leading to a saturated market. Some operators also argue that 'brand' and 'narrative' abilities are the keys to success, rather than technical strength.

[Disclaimer] There are risks in the market, and investment needs to be cautious. This article does not constitute investment advice. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their specific circumstances. Invest at your own risk.

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"The wave of encryption set off by Trump's election! 3 major tracks become the focus of the outbreak, will the industry usher in a super cycle?" This article was first published in "encryption city"