Altcoin Season May Be Starting as Donald Trump Announces a Strategic Crypto Reserve

This has been especially true following Donald Trump's announcement of a strategic crypto reserve. It includes several major altcoins, including Ripple (XRP), Solana (SOL), and Cardano (ADA).

Crypto markets are showing signs that altcoin season may be starting. This has been especially true following Donald Trump’s announcement of a strategic crypto reserve. It includes several major altcoins, including Ripple (XRP), Solana (SOL), and Cardano (ADA).

On Wednesday, March 5, WisdomTree released a report anticipating an altcoin season this year. The report is particularly bullish for XRP and Solana, which were named in US President Donald Trump’s push for a crypto strategic reserve.

The asset manager and ETF issuer claimed that XRP and Solana are set to lead the next altcoin rally. Growing institutional interest and expansion in use cases set them up for long-term growth. Additionally, the asset manager highlighted the struggle over which token will become the base layer for DeFi’s future.

The company anticipates several major growth catalysts for these tokens, including the likely approval of ETFs for XRP and Solana in the US in 2025, which will enhance their institutional credibility. At the same time, both tokens have varied and expanding use cases.

For one, cross-border financial settlements continue to be the main use case for crypto. XRP’s focus on this sector makes it a key player, with many institutional clients. At the same time, Solana has broad use cases. Thanks to its speed, ease of use, and low fees, it is a powerhouse for DeFi, NFTs, and dApps.

Solana and XRP Face Continued Pressure

Despite their use cases, Solana and XRP have continued to face selling pressure recently. After briefly recovering from Trump’s crypto reserve announcement, the token continued to trend down. Solana reached $144 after dropping 33% in a month. XRP remained more stable, down 6.59% in 30 days to $2.49.

The tokens are coming under selling pressure due to fears about the effects of the US trade war with several of its top trading partners. As investors reassess risk, many move away from growth assets like crypto and opt for safer bets.

Still, the Trump announcement significantly improved XRP’s and Solana’s technical outlook. If the move proceeds, the fundamental case for both tokens will also improve massively.