Trump's "carefully selected" strategic reserve asset—why this one in particular?
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Trump's "carefully selected" strategic reserve asset—why this one in particular?
These five tokens each have unique characteristics, covering key areas such as value storage, smart contracts, high-performance blockchains, financial bridges, and future potential.
Navigating Web3 tides with focused insightsAuthor: 1912212.eth, Foresight News
On the evening of March 2, Trump added fuel to the already flickering crypto market. He announced on his social media platform that after years of suppression under the Biden administration, a U.S. cryptocurrency reserve would elevate this critical industry. "This is why my executive order on digital assets instructs the Presidential Working Group to advance a strategic cryptocurrency reserve including XRP, SOL, and ADA. I will ensure America becomes the world capital of cryptocurrency. We are making America great again!"
Not stopping there, just an hour later, Trump posted again: "Clearly, BTC and ETH, along with other valuable cryptocurrencies, will be at the core of the reserve. I love Bitcoin and Ethereum!"
Following this news, BTC surged from $85,000 to near $95,000, ETH jumped from $2,200 to $2,550, SOL rebounded from $140 to around $180, ADA rose from $0.65 to as high as $1.17, and XRP climbed from $2.2 to nearly $2.9999. Numerous altcoins such as SUI, ENA, and ONDO also saw significant rallies. The previously pessimistic and despairing market sentiment was instantly swept away.
In terms of futures data, total liquidations across all contracts reached $825 million in 24 hours, with $545 million coming from long positions.
From Skepticism to Embrace: Trump Delivering on Promises
As early as 2021, Trump publicly criticized Bitcoin as a scam, claiming it threatened the dominance of the U.S. dollar. However, since launching his 2024 presidential campaign, he has gradually shifted his stance. At the Bitcoin 2024 conference, he pledged that if elected, he would retain all Bitcoin held by the federal government, creating a "National Bitcoin Reserve." This latest announcement not only signals fulfillment of that promise but extends it to other major cryptocurrencies, reflecting a renewed understanding of the strategic value of digital assets.
Currently, the global crypto market is in a period of volatility. Although Trump’s election initially sparked a rally, recent price declines have shaken investor confidence. The Trump-themed meme coin TRUMP created wealth for a few but drained broader market momentum, marking a short-term peak. Major coins and meme tokens began declining, with Bitcoin even briefly falling below $80,000. Against this backdrop, Trump’s declaration acted like a shot in the arm, revitalizing the market.
David Sacks, known as the "Crypto Czar," commented: "President Trump has announced a strategic cryptocurrency reserve composed of Bitcoin and other top cryptocurrencies. This aligns with Executive Order 14178 issued during his first week. President Trump is delivering on his promise to make America the 'crypto capital of the world.' More details will be revealed at the White House Crypto Summit on March 7."
Why These Five?
Trump’s crypto project WLFI had previously invested heavily in WBTC, ETH, MOVE, ENA, ONDO, and other tokens—all of which saw strong gains in the early hours of March 3. Many investors wonder why Trump chose Bitcoin, Ethereum, Solana, XRP, and ADA for the strategic reserve, rather than others.
Bitcoin: The Undisputed King
As the first cryptocurrency, Bitcoin’s status remains unchallenged. Its market cap consistently exceeds 40%, earning it the title of “digital gold.” Trump’s selection of BTC reflects not only its global recognition but also its symbolic significance—the genesis of decentralized finance. Including it in the reserve underscores America’s commitment to leadership in crypto and establishes a foundation of trust for the entire initiative.
Brian Armstrong, co-founder and CEO of Coinbase, commented on social media regarding Trump’s crypto reserve plan: “For strategic asset allocation, Bitcoin may be the best choice. As successor to gold, Bitcoin offers the simplest and clearest narrative.”
Polymarket data shows the probability of a Bitcoin strategic reserve being established by 2025 has risen from 40% to over 60%.
Ethereum: Foundation of Smart Contracts
Ethereum stands as another beacon in the blockchain world. As a pioneer of smart contracts, ETH powers DeFi, NFTs, and more, with total value locked exceeding tens of billions of dollars. Its vast developer community and rich ecosystem make it a hub of blockchain innovation. Trump’s inclusion of ETH signals recognition of the diverse potential within the crypto economy—not merely accumulating a single asset.
Earlier in February, Trump’s son Eric Trump endorsed ETH, calling it the ideal time to accumulate more.
Solana: Representative of High-Performance L1
Solana has emerged due to its high throughput and low transaction costs, capable of processing tens of thousands of transactions per second—far surpassing both Bitcoin and Ethereum. Despite past controversies over network stability, its technological advantages remain undeniable. Since 2024, it has attracted substantial capital inflows and dominated the meme coin wave. The Trump-themed token TRUMP was launched on Solana. By including Solana in the reserve, Trump demonstrates forward-looking positioning in next-generation blockchain technology, aiming to dominate the performance frontier. Solana is currently the second-largest public blockchain after Ethereum, with a market cap exceeding $86 billion.
XRP: A Cross-Border Payment Powerhouse
Backed by Ripple, XRP focuses on cross-border payments, offering fast transactions and low fees, already adopted by hundreds of financial institutions globally. Though previously embroiled in litigation with the SEC, its 2023 legal victory helped clear its name. Trump’s selection of XRP likely reflects its role as a bridge between traditional finance and the crypto world. On March 3, following a sharp price increase, XRP’s FDV reached $272.6 billion, surpassing Ethereum for the first time.
In February, Trump shared an article related to XRP on Truth Social. Originally published by CoinDesk in January, the article highlighted how Ripple CEO Brad Garlinghouse reported increased business cooperation and hiring in the U.S. after Trump won the election in November 2024. At the end of 2024, Ripple donated $5 million in XRP to Trump’s inauguration committee. Ripple also contributed $25 million to the pro-crypto Super PAC Fairshake—these large donations positively impacted its business growth.
In the same month, Nasdaq Market Services LLC filed a proposed rule change with the SEC to list and trade shares of the CoinShares XRP ETF (“the Trust”). Arthur Azizov, CEO of B2BINPAY, stated: “An XRP ETF is highly likely to launch this year; the exact timing depends on the pace of resolving legal disputes with the SEC.”
Cardano (ADA): Academically Driven with High Potential
Cardano is renowned for its academic research-driven development approach. While ADA’s market cap lags behind the others, its real-world applications in Africa and Southeast Asia are impressive. For example, Cardano partnered with the Ethiopian government to provide blockchain-based identity verification for 5 million students, showcasing its potential in inclusive finance. Trump’s inclusion of ADA may signal support for global financial inclusion while adding diversity and innovation to the reserve. ADA currently ranks 8th in market cap, exceeding $37 billion.
Last year, Robinhood US relisted both ADA and XRP.
Conclusion
Why were popular cryptos like Dogecoin and BNB left out? DOGE, despite Musk’s endorsement, is overly speculative and lacks substantive technological backing, making it unsuitable for the seriousness of a national strategic reserve. BNB, while central to Binance’s ecosystem, leans toward centralization—contradicting the decentralized ethos of crypto—and relies too heavily on a single platform. Meanwhile, technically robust projects like Avalanche show promise but still lag behind the selected five in market influence and maturity.
Trump’s selection of BTC, ETH, SOL, XRP, and ADA for the strategic reserve reflects his team’s deep understanding of cryptocurrency diversification. Each of these five serves a distinct purpose—value storage, smart contracts, high-performance infrastructure, financial bridging, and future potential—forming a balanced portfolio of digital assets. This move could not only reshape America’s position in the global digital economy but also set a new benchmark of confidence for the entire crypto industry.
Going forward, as the reserve plan unfolds, the status of these five cryptocurrencies may strengthen further. For those not included, this could serve as motivation to accelerate innovation. Regardless, Trump’s decision has opened a new chapter for the world of crypto.
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