3 days ago
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US President Donald Trump continues to deepen his ties with the crypto industry, living up to the label of “the crypto President.”
The President’s crypto company, World Liberty Financial ($WLFI), will launch its dollar-backed stablecoin, USD1.
The announcement came after Trump touted the stablecoin legislation being pushed by the Republicans in the US Congress and praised the asset class in last week’s Blockworks Digital Asset Summit.
Investors are viewing USD1 as largely bullish for WLFI, the native cryptocurrency of Trump’s crypto company.
However, analysts believe it falls short compared to other assets they currently consider the best cryptos to buy.
Donald Trump’s World Liberty Financial To Launch Its Own Stablecoin – Is It Bullish For Crypto?
World Liberty Finanical continues to establish itself as one of the top DeFi companies, now launching its own dollar-backed stablecoin.
Spearheaded by the President’s second son, Eric, USD1 is designed for institutions and retailers alike and will be fully backed by short-term US treasuries, dollar reserves and other cash equivalents.
The bulls claim that USD1 will significantly boost $WLF’s demand, potentially attracting significant institutional investments.
However, experts worry that Trump’s stablecoin won’t get much traction in a highly saturated market.
There is undoubtedly a significant demand for stablecoins. Both the US Senate and House of Representatives are currently legislating on their respective stablecoin bills, claiming that dollar-backed stables could strengthen the USD.
And yet, the stablecoin market is dominated by two major players, Tether’s USDT and Circle’s USDC, with a market capitalization of $144 billion and $60 billion, respectively.
The next largest stablecoin, Ethena’s USDe, has a just over $5 billion valuation. Even PayPal and Ripple’s stables, PUSD and RLUSD, have valuations of just $804 million and $193 million, respectively.
Meanwhile, new competitors continue to enter the space. The state of Wisconsin is considering unveiling its own stablecoin and is currently testing the idea on Ethereum, Solana and Avalanche. More significantly, the $5 trillion asset management fund Fidelity is in talks to launch its own stablecoin.
However, Trump’s deepening ties with crypto is bullish for the industry in the long term, even as the US President finds himself in increasingly hotter water owing to potential conflicts of interest.
While WLFI may not be among experts’ lists of best crypto to buy now, other assets with ties to Trump are.
Best Cryptos To Buy Now
Prominent analysts like James Van Straten believe that the growing demand and institutional interest in stablecoins are extremely bullish for Bitcoin, considering the strong correlation between the BTC price and stablecoin supply.
Moreover, Donald Trump’s stablecoin confirms that the US President will continue to play a key role in the industry’s trajectory. As a result, betting on US-based projects like XRP, Solana, and Cardano is a smart strategy.
In particular, Ripple’s strong relationship with the Trump administration could prove to be a boon for XRP in the coming years.
Meanwhile, smart money investors continue to buy high-upside, low-cap crypto assets. For instance, there is a growing interest in the first prominent Solana layer-2 coin, Solaxy (SOLX).
Whales are pouring in six-figure investments while there is also significant retail demand. Unsurprisingly, the SOLX presale has raised over $28 million in its ICO in short order.
And yet, experts believe SOLX is undervalued in its presale, considering the multibillion-dollar valuations of most Bitcoin and Ethereum Layer-2 coins. The fact that the token will likely go live on exchanges amid the second-quarter crypto bull run only raises its upside potential.
Prominent analysts believe Solaxy is an attractive investment, with some even calling it the next 10x crypto.
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