Analysts at Bernstein anticipate that as the regulatory environment evolves, liquidity in the crypto market will begin to flow back from meme coins to DeFi projects, NFTs, and gaming tokens. This is reported by The Block.
According to Bernstein’s report, under the leadership of former SEC Chair Gary Gensler, the industry faced strict restrictions, prompting market participants to move towards less regulated segments.
The situation began to change with the arrival of a new administration. The main candidate for the head of the agency under President Donald Trump became Paul Atkins, known for his crypto-friendly stance. The SEC also established a task force to support digital assets led by Hester Peirce.
The Commission is already showing changes in its policy: following the conclusion of legal proceedings against Coinbase and OpenSea, the regulator ended its pursuit of Robinhood’s crypto division.
Bernstein also noted a decline in the hype around meme coins after a series of high-profile failures. In one instance, Argentina’s President Javier Milei endorsed the LIBRA project. This led to losses among traders and negative repercussions for the politician’s reputation.
Analysts point out that this “breather” will allow the market to focus on developing more sustainable segments, such as stablecoins and RWAs. They state that “stablecoins” have the potential to enhance the system of international payments, banking settlements, and money transfers.
Bernstein also forecasts an increase in trading volumes due to new listings of tokenized assets and rising demand for stablecoins. Among the beneficiary companies, analysts mention Robinhood, which is preparing to launch products related to staking, derivatives, and stablecoins, thanks to its acquisition of the Bitstamp exchange.
Earlier, analysts announced the beginning of the next phase of the Bitcoin bull market amid initiatives by the Trump administration.