On March 3rd, U.S. President Trump expressed his intention to include cryptocurrencies in a new strategic reserve owned by the U.S. government. He made this announcement on social media platform Truth Social, surprising traders by selecting XRP, SOL, and ADA tokens, in addition to bitcoin and ether, causing their prices to surge.
XRP, created by U.S. crypto company Ripple, is the third-largest cryptocurrency globally, with $140 billion in circulation at a value of approximately $2.40 per token. Ripple promotes XRP as a faster and cheaper means of transferring funds worldwide compared to other cryptocurrencies, although its value is subject to volatility.
Solana's SOL token operates on the Solana blockchain and is the sixth-largest cryptocurrency with around $73 billion in circulation. Despite experiencing volatility and a significant loss in value in 2022 due to its association with former FTX CEO Sam Bankman-Fried, Solana gained attention as a competitor to ether and due to its involvement in the NFT market.
ADA, running on the Cardano blockchain, was founded by Charles Hoskinson in 2015 and is the eighth-largest cryptocurrency with $31.4 billion in circulation. Following Trump's statement, ADA experienced a price surge of over 70%. Cardano is associated with the non-profit Cardano Foundation and for-profit entity Emurgo.
Bitcoin, the pioneering cryptocurrency launched by an individual known as Satoshi Nakamoto, is the largest digital currency with a market capitalization of around $1.7 trillion. Its value surged in response to regulatory developments and Trump's pro-crypto stance after his election.
Ether, the cryptocurrency of the Ethereum blockchain, aims to revolutionize decentralized finance (DeFi). Established in 2013-2014 as a rival to bitcoin, the Ethereum platform is utilized by World Liberty Financial, a company associated with Trump and his sons, in issuing digital tokens to bolster leading cryptocurrencies.
Both Ripple and Cardano did not respond immediately to requests for comment, while the Ethereum Foundation did not provide a comment either.