Collins J. Okoth
Marcin Kaźmierczak, Redstone’s co-founder and COO, says the current Bitcoin surge could push DeFi and BTC staking mainstream. He added that Bitcoin’s rise towards the $100K mark was not an isolated case; it had also triggered an increase in DeFi activity.
As crypto advocates anticipated potential shifts in pro-crypto policy, Kaźmierczak suggested that the Trump administration could drastically propel DeFi’s expansion. He believes the incoming president’s administration could catalyze an ‘influx of innovation and investment’ as its policies catapulted DeFi from niche to mainstream.
DeFi and Bitcoin staking could increase under Trump
TRUMP’S POTENTIAL PRO-CRYPTO POLICIES MAY REDEFINE DEFI AND BTC STAKING
Crypto industry leaders speculate Trump’s 2025 administration could create a regulatory environment favoring DeFi and Bitcoin staking.
RedStone COO highlights BTC staking’s potential to rival traditional… pic.twitter.com/phZrylZy4a
— IBC Group Official (@ibcgroupio) November 16, 2024
Redstone’s co-founder claimed that Trump’s pro-crypto policies were likely to redefine DeFi and BTC staking as industry leaders speculated a regulatory environment that favors staking.
According to Kaźmierczak, Trump’s adoption of a more crypto-friendly approach to legislation that reduced regulatory barriers was likely to trigger a bullish wave across DeFi platforms. He also claimed that this could rewrite the rule of ‘digi-fi’, as well as incentivize long-term BTC holding.
The Redstone co-founder, however, noted that while this was promising, challenges like the volatility of BTC price and the failed WLFI token launch suggested hurdles for mainstream adoption.
Nonetheless, Kaźmierczak pointed out that the failed launch of Trump’s WLFI token, which only sold 848.63 million (~4.24%) WLFI, was attributed to five factors. Kaźmierczak listed the website’s crash, limitations on who could buy the tokens, the inability to transfer the token, people considering it a gift, and the overly complicated buying process as some of the reasons WLFI failed.
In reflection of Kaźmierczak’s sentiments, recent data from Coingecko revealed that the DeFi sector was gaining momentum as its 24-hour market cap surged 6.3% to reach $91.89 billion.
DeFi’s dominance in the wider crypto market was also on the rise and was currently sitting at 2.9%. The sector’s 24-hour trading volume reached $7.88 billion while its TVL (total value locked) stood at a substantial $127.78 billion, as per Coingecko’s data.
Bitcoin is set to become a new standard for investment
The COO asserted that BTC’s staking could potentially rival traditional investments by offering a dual role as a source of income and a store of value. He emphasized that the psychological impact of BTC’s price nearly hitting $100K could open an era where the staking of Bitcoin became commonplace as stock dividends. He added that this could attract a wider spectrum of investors, from retail to huge institutional funds.
Kaźmierczak said that increasing Bitcoin’s appeal through staking could significantly reduce selling pressure, although price volatility could still impact this. He noted that BTC’s notorious volatility functioned as both a minefield for the market and a magnet for investors.
According to Kaźmierczak, this created an unpredictability that could deter conservative investors and erode the confidence of participants. Data from Coingecko suggested that Bitcoin’s dominance would only continue rising, as the world’s largest token recently hit an ATH of $93.4K.
