Why is “Made in the USA” the next big narrative?

Bitcoin and cryptocurrencies have begun a new era with the inauguration of the first ever pro-crypto president. The key question is whether the shift toward positive cryptocurrency regulation and increased market activity is a sustainable shift or a temporary reaction to changing political tides.

Made in the USA cryptocurrencies performed well this week, emerging as the most relevant narrative in the sector.

Bitcoin and cryptocurrency markets break records in market activity

The election of Donald Trump as President of the United States has raised the hopes of cryptocurrency traders and companies. The pro-crypto administration supported the narrative of a new era for cryptocurrencies, ushering in greater certainty and higher market activity.

According to CCData’s latest Stock Exchange Review report, a key measure of market participation hit a milestone in 2024. Total spot and derivatives trade volume rose to $75 trillion versus 2021’s record high of $64 trillion.

The two main catalysts were speculation surrounding the November 2024 elections and the Bitcoin bull market, at the end of 2024. Both November and December were record months for cryptocurrencies with monthly trading volumes reaching $10.51 trillion and $11.31 trillion.

The market cap of stablecoins helps determine market activity, engagement, and onboarding new users within the ecosystem. Stablecoins serve as on- and off-road cash for new and novice crypto traders, thus representing market participation and adoption. Data from DeFi tracker DeFiLlama shows a significant spike in the market cap of stablecoins on President Trump’s inauguration day.

The market capitalization exceeded US$210 billion and witnessed an annual increase of 3.3% since the beginning of the year with rising liquidity and trade volume across centralized and decentralized exchanges. The massive influx of capital from traders has supported this rally.

As of Thursday, January 23, the market cap of stablecoins was $214.407 billion, as shown in the DeFiLlama chart below.

Cryptocurrency traders are bullish on tokens made in the USA

President Donald Trump’s statement that he wants all remaining bitcoins to be “Made in the USA” has given rise to a new narrative for cryptocurrencies, namely Made in the USA tokens. CoinMarketCap and CoinGecko have launched a category of “Made in USA” tokens.

XRP (XRP), Solana (SOL), Cardano (ADA), Chainlink (LINK), and Avalanche (AVAX) are among the top five altcoins on the list, and the market cap of this category exceeds $541 billion.

The CCData report indicates that the basket of cryptocurrencies in this category has outperformed the rest of the market. The coins are up 360% since the election, as traders expect a positive regulatory environment and more favorable conditions for token coins made in the states.

The narrative depends on the policy and procedures of the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC), and whether President Trump offers a strategic reserve of Bitcoin during his time in office. The four-year cryptocurrency market cycle could see a shift away from historical trends.

Made in USA vs. Chinese coins listed

In 2024, Chinese coins trended on X and other social media platforms as traders flocked to buy made-in-China cryptocurrencies, such as Neo (NEO), VeChain (VET), Huobi (HTX), Filecoin (FIL), and Qtum (QTUM). and ontology (ONT), among others.

As the tides of policy and regulation change, the Made in America narrative has the potential to compete with Chinese coins. President Trump has appointed SEC Commissioner Hester Peirce as chair of a new “Cryptocurrency Task Force” to provide clarity and support to the industry. There is an expectation that the new task force will support the gains of Made in the USA tokens.

Bitcoin traders can benefit from these five codes

Solana, XRP, SWI (but), Aptos (APT) and injections (Eng) could rise in the coming weeks, based on the made-in-the-USA narrative. Solana was conceived in California and is known for its fast transactions and scalability.

Meme coins issued for President Trump and First Lady Melania Solana Blockchain Contributed to increased activity on the chain.

Cryptocurrency company Ripple has been fined $125 million for violating securities laws in its institutional sales of XRP, from both sides (SEC and Ripple) appealed the ruling and the SEC argued that institutional and secondary market sales of XRP should be treated in a similar manner.

As XRP traders await an outcome in the appeal process, XRP remains steady above $3, having reached a new all-time high in January 2025.

SUI and APT are US-backed layer 1 tokens that enable higher scalability and faster transactions for traders while extracting security from the Ethereum core chain.

INJ is a DeFi token with a focus on innovation and artificial intelligence, the project is made in the USA and could benefit from the DeFAI narrative.

On-chain analysis of the top 5 made in the USA tokens

Santiment data shows that total USD open interest in the top 5 USA-made tokens saw significant spikes in January, close to the open. Even with OI down from its asset high, it is above the 2024 average, supporting the bullish thesis for cryptocurrencies.

Likewise, volume of the top 5 US-made coins hit a significant spike earlier in January, and since then volume has remained above average levels.

Solana It holds onto double-digit gains over the past seven days while other cryptocurrencies in the top five, along with Bitcoin, struggle on Thursday.

Ruslan Lenka, Head of Markets at YouHodler, told Crypto.news:

“We may see an accelerated pace of approvals for crypto ETFs. However, the most important development lies in the possibility of creating a comprehensive legal framework for the cryptocurrency industry in the United States. This could lead to the full recognition of cryptocurrencies as a distinct asset class. Previously, attempts have been made to To classify cryptocurrencies within existing asset classes, such as securities or commodities, which have not fully captured their unique characteristics.”

Tim Ogilvie, Global Head of Enterprise at Kraken, said:

“There is still room for Bitcoin’s bullish momentum to grow, as evidenced by the Relative Strength Index (RSI), which currently sits at 65. In general, an RSI above 70 is considered overbought.

Solana (SOL) price reached an all-time high of $260 this week. However, technical analysis indicates that it is now in overbought territory, with the RSI near 75. While there may still be bullish momentum, this may also indicate caution for short-term traders. They will be watching to see if SOL can close above $260 to confirm renewed bullish momentum.”

In the Cryptocurrency Regulatory Affairs newsletter, experts at Elliptic said:

“On January 20, US President Donald Trump was sworn in for his second term in office, a moment the cryptocurrency industry had been anticipating with high expectations. Ahead of his inauguration, recent news reports indicated that President Trump – who campaigned on a promise to make the United States a leader in… Cryptoassets Innovation – He plans to issue executive orders upon taking office that would declare cryptocurrencies a national strategic priority, appoint a CEO as a crypto czar and create a crypto council to effect policy changes, and repeal a controversial accounting rule To controvert cryptocurrencies was created by the Securities and Exchange Commission (SEC), known as Staff Accountability Bulletin (SAB 121).

However, in his first twenty-four hours in office, President Trump did not sign any executive order related to cryptocurrencies.

Cryptocurrency traders and experts maintain optimism about positive measures during Trump’s first 100 days back in office.