The Scaling Role of DeFI within the 2024 U.S Elections
2024 has certainly been a much needed upward trajectory for the DeFI Space and as we turn to the 2nd semester of the year, all eyes are focused on the U.S Presidential Election. The battle between Former President Donald Trump and President Joe Biden has the ability to be a wind turner for the DeFI Space who seem to be heading for stagnation. So let’s take a look at the 2024 U.S Elections and the growing role of the DeFI Space within the United States ahead.
DeFI and the 2024 U.S Elections
2024 so far has been the year of Elections with countries such as India, Indonesia, France and the UK searching for New Leaders for the nations. Elections obviously bring Fresh Hope for the New Administration to head the country in the right direction but it also brings uncertainty for the regulations that are upcoming. This Sentiment echoes to all the Industry who are on the “Wait and See” stage including the DeFI space.
While those uncertainty continues on, none are much bigger than the U.S Presidential Elections which will be coming on November 5th, 2024. The reuniting battle from the previous edition saw Former President Donald Trump and President Joe Bifen clash once again as both candidates eyes for their second term. Although mired with banter from both ends, the result has implications that could echo to many countries.
Despite the recent trend of De — Dollarization, the United States continued to perform as the Economic Superpower and the World’s Reserved Nation. The continued sentiment by the FED to adopt a “Higher for Longer” interest rate has led to the strong performance of USD against many other currencies from developed nations such as the GBP or JPY and caused a stagnation for riskier assets such as Bitcoin and other Digital Assets.
This “Hawkish” Interest rate has also helped U.S Economy to recover with Inflation nearing its target of 2% YoY while the S&P 500 has grown more than 15% on a Year to Date basis. This then put a huge emphasis on the U.S Elections as the compass to determine where the U.S economy will head next on the remainder of 2024 and the Presidential Debate as a little sneak peek on who might be the victors come November..
Flipping through the headlines from the exchange between the two candidates and you might hear Bitcoin being spoken really often. Lately Bitcoin and the growing role within the United States has been frequently mentioned by Former President Donald Trump and the Republicans who realize the huge interest for cryptocurrencies within the nation. This sentiment could be pivotal to swing the pendulum in his favor as according to data from Grayscale, nearly half of voters (47%) may include some sort of crypto within their portfolio.
This represents more than a 40% increase since the last Presidential Elections where crypto was still in its obscurity and uncertainty. The United States has over time grown its role within the DeFI Space as it is now the home of major events such as Bitcoin 2024 and Consensus 2024 which are attended by millions of visitors annually. The U.S is also home of two giants within the Crypto Exchange world in Crypto.com and Coinbase with daily transaction volume reaching millions.
These factors paired with the vast amount of key players such as Influencers, Enthusiast and Miners situated within the United States makes it an instrumental force within the DeFI Space. According to the recent study done by the National Crypto Council, eight in ten respondents regard the position of the candidate on cryptocurrency matters as “somewhat important” while 83% prefer candidates who can finalize clear regulations for the space to grow and create jobs.
It is this sentiment that former President Donald Trump is willing to capitalize with analysts predicting Bitcoin to reach 6 figures if he is re — elected. The Former President currently receives plenty of support from the industry with his pro — crypto stance during his electoral campaign and the party also allows donations to be received in Digital assets such as Bitcoin, Ethereum and Solana just to name a few.
The Former President’s active involvement in the X social media platform also displayed some of his intention in rejecting the Bipartisan Bill and increasing the capability of Bitcoin miners within the nation to prevent the introduction of CBDC. The Former President also seems to point to the Republicans’ stance against the Crypto Community that is giving the lead to other nations such as Vietnam, India or the UAE.
While Donald Trump continues to endear himself to the younger audience within the Crypto community, President Joe Biden also has received support from the industry with Coinbase being the most notable one. With the future of the DeFI Space quite possibly hanging in the balance of both these candidates, it is still uncertain times for the community as we await the election to roll by.
The Future within United States
From its massive peak of $73,000 in March 2024, Bitcoin and other digital assets have seen a recent stagnation in its value. Part of which may be attributed to the High Interest Rates that are limiting in flows to the DeFI Space but majority may be the result of uncertain times within the economy as countries battle Inflation and Unemployment at the same time. This is why the impending Crypto Regulatory Framework may be the momentum needed for the upward trajectory of the DeFI Space.
While hope for this Regulation may be far afield as we head to the 2nd semester of 2024, the future seems to be much of the same until the new administration is elected to the office. Both President Joe Biden and the Former President Donald Trump seem to have their draw within the crypto community while the crypto topic goes unmentioned during the first debate at the end of June.
Looking back at the past U.S Presidential Elections in 2020, Bitcoin and other Digital Asset surges to an all time high levels just less than 12 months after so the bright spot is we can expect the same to happen in 2024. With plenty of new trends and opportunities within the DeFI Space emerging, we can always expect a bright future for the crypto community as we head to the year 2025.
Although it is an interesting feat for the DeFI Space to be the possible tipping point in the 2024 President Elections when it simply goes unnoticed during the previous edition. This further proves the instrumental amount of growth that the community has built up and continued stream of innovation that convinced many nation leaders to take notice. It is an interesting prospect beyond the current Presidential Elections as major breakthroughs are achieved for the Sustainable Growth of the DeFI Space.
We from the Nagaya Technologies Pte. Ltd are proud of the development of the DeFI Space as there is enormous potential that lies within the Blockchain Technology paired with Sustainability being the key idea in its application. Nagaya becoming the World’s First Hybrid Digital Asset continues our commitment to expand real-life adoption of Blockchain Technology Sustainably. Intrigued to know more about Nagaya, you can visit us at www.nagaya.co
Or you can obtain your Nagaya now through the Latoken Platform at https://latoken.com/exchange/NGY_USDT
