Ethereum (ETH) is facing renewed competitive pressure after nearly $87 million in assets migrated from its ecosystem to rival blockchains in the week following former U.S. President Donald Trump's repeal of a controversial decentralized finance (DeFi) regulation.
Capital flows from Ethereum to faster, low-cost rivals like Solana have continued, with nearly $87 million in assets migrating in the week following former U.S. President Donald Trump’s move to repeal a controversial decentralized finance (DeFi) regulation.
Trump signed a bill on April 10 that would overturn a Biden-era mandate requiring DeFi protocols to comply with Know Your Customer (KYC) and Anti-Money Laundering (AML) rules. The move was widely seen as a win for crypto-native projects, removing a major regulatory overhang that threatened the sector’s structure. But for Ethereum — the current hub of DeFi liquidity — the impact has been less than favorable.
According to data from Wormhole, the largest cross-chain bridge on Ethereum, Solana (CRYPTO: SOL) captured the lion’s share of outflows with over $54 million being redirected into the ecosystem. Afterwards came Base, Arbitrum and Avalanche, attracting $9.6 million, $5.8 million and $3.9 million, respectively.
Solana-bound assets were funneled into DeFi protocols such as Jupiter, Kamino and MarginFi.
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