Let’s get this out of the way: Donald Trump’s decisive victory over Kamala Harris in the 2024 election is the main reason why cryptocurrencies are on the rise today. As of 3:15 p.m. ET, the entire crypto market jumped 11.2%, which is more than a significant move: it’s an incredible daily move rarely seen, even in this asset class.

However, as is the case with any market-wide rally, some tokens perform better than others. Uniswap (UNITED 24.54%), Aave (AAVE 21.15%)And Sei (SEI 14.26%) are among today’s top tokens in terms of daily gains, increasing by 32.3%, 26.9%, and 15.3% respectively over the same period.

There is a fundamental reason for this decision. Today let’s take a look at what’s driving buying activity in these decentralized exchanges and trading-related cryptocurrencies.

Crypto trading activity expected to take off

Uniswap is one of the largest decentralized exchanges in the world. Aave is a leading decentralized finance protocol for borrowing and lending in the world of digital assets. And Sei is a leading layer 1 crypto project specifically designed to enable decentralized exchanges to operate with greater functionality and improved performance.

Thus, a wave of capital inflows into the crypto world is expected to disproportionately benefit these three projects. The thesis is really that simple.

As cryptocurrency prices increase, investors can expect fees related to transaction activities to increase. This is usually because crypto trading volumes are highly correlated with price movements: as prices trend higher, trading activity tends to accelerate as the herd of investors search to capitalize on what appear to be easy-to-capture gains.

So, indications that a pro-crypto Trump presidency could result in less (or more favorable) regulation for this sector and allow for broader adoption and trading of various tokens are certainly bullish for projects that earn their keep by facilitating crypto trading. transactions or providing infrastructure. to do it. These three projects clearly have a lot to gain from the sustained rise in prices in the crypto world and the associated increase in transaction activity that can result. As their relative moats increase compared to other crypto projects, investors appear to be hoping that higher revenue from transaction fees will translate into higher token burn rates and higher valuations, while more and more investors are looking to take a pick and shovel approach to this merger. -up.

Can the merger continue?

Today’s incredible performance seen at Uniswap, Aave, and Sei is truly an outlier. Among the top cryptocurrencies, these three projects tend to be some of the most stable tokens I have on my watchlist. This is on a relative basis: the crypto sector is extremely volatile, as many investors know well. But I wouldn’t be surprised to see some sort of reversion trade take place in the coming days, where some investors take a little cream off the top and start taking profits. We’ll see.

For now, investors looking for ways to boost on-chain commerce activity have three great options to consider in this space. I believe these are three crypto projects that are laying the foundation for decentralized commerce to become more common. If investors turn to blockchain-based solutions for trading blockchain projects (a thesis that certainly makes sense), this recent momentum could certainly continue. That said, this move was noteworthy, so I will be watching for any sort of selling pressure in the coming weeks, and my base case is that a “sell the news” trade could form after the end of the Maximum euphoria.