2 Types of Cryptocurrencies Getting Slammed by President Trump's New Tariffs

1 month ago 21

Dominic Basulto, The Motley Fool

Mon, Apr 28, 2025, 4:30 AM 5 min read

Only a fistful of cryptocurrencies, specified arsenic Bitcoin (CRYPTO: BTC) and XRP (CRYPTO: XRP), person been capable to debar the worst of the declines successful effect to President Donald Trump's caller tariffs.

Most apical cryptocurrencies are down astatine slightest 20% for the year, with 2 large categories of cryptocurrencies -- Layer 1 blockchain networks and meme coins -- getting slammed particularly hard. Let's instrumentality a person look to spot whether immoderate of these beaten-down cryptos mightiness beryllium worthy buying close now.

Where to put $1,000 close now? Our expert squad conscionable revealed what they judge are the 10 champion stocks to bargain close now. Continue »

Layer 1 blockchain networks, specified arsenic Ethereum (CRYPTO: ETH), Solana (CRYPTO: SOL), Cardano (CRYPTO: ADA), Sui (CRYPTO: SUI), and Avalanche (CRYPTO: AVAX), person declined significantly. All of them inactive boast marketplace caps of $9 cardinal oregon higher and inactive fertile among the apical 15 cryptocurrencies successful the world. However, it has go evident that galore investors won't interaction them.

The worst performer by a wide borderline has been Ethereum. While Solana and Cardano are down a disappointing 20% connected the year, Ethereum is down an eye-popping 46%. The capitalist sentiment astir Ethereum is profoundly negative, and the spread betwixt Ethereum and its closest rivals appears to beryllium narrowing.

Quite frankly, this shouldn't beryllium happening. After all, Ethereum is the world's second-largest cryptocurrency, with a marketplace worth of astir $220 billion. It is 1 of lone 2 cryptos (Bitcoin being the other) with a spot exchange-traded money (ETF). During the past decade, it has had an impeccable way grounds of delivering outsized returns to investors.

Despite its existent slide, Ethereum inactive appears to person the enactment of the Trump administration, which made it a cornerstone of its caller U.S. Digital Asset Stockpile backmost successful March. Members of the Trump family, including President Trump himself, person publically vouched for Ethereum connected societal media. And World Liberty Financial, the crypto institution affiliated with the Trump family, has made Ethereum a high-profile holding.

If there's immoderate class of crypto that's performing worse than Layer 1 blockchains close now, it's meme coins. The existent tariff situation has led to a stark risk-off mentality among investors, and determination hasn't been a bully crushed to put successful meme coins for months now.

Disappointed capitalist looking astatine smartphone.

Dogecoin (CRYPTO: DOGE), the apical meme coin by marketplace cap, is down 45% this year. Shiba Inu (CRYPTO: SHIB), the second-largest meme coin, is down 37%. Pepe (CRYPTO: PEPE), the third-largest meme coin, is down 53%. And the Official Trump meme coin (which trades nether the ticker TRUMP), the fourth-largest meme coin, is down a face-melting 84% since its debut backmost successful January.