Trump’s New Tariffs Are Crushing These 2 Cryptos – Is Your Portfolio Safe?

President Donald Trump’s new tariffs have caused a sharp downturn in the cryptocurrency market, with many digital coins seeing significant drops. While some major cryptocurrencies like Bitcoin (BTC) and XRP (XRP) have managed to avoid the worst of the decline, others, particularly Layer 1 blockchains and meme coins, have been hit hard.

Layer 1 Blockchain Networks: Ethereum, Solana, and Others Face Big Losses

Layer 1 blockchains like Ethereum (ETH), Solana (SOL), and Cardano (ADA), which are among the most well-known cryptocurrencies, have seen their prices drop significantly. Despite their large market caps (all worth over $9 billion), they have not been immune to the effects of the tariffs.

Ethereum, the second-largest cryptocurrency by market value, has dropped nearly 46% this year, making it the worst performer in this group. Solana and Cardano have also struggled, with each down by around 20%. While these coins are still prominent in the crypto market, investor confidence in them has been shaken.

Despite this, Ethereum remains an important player. It has strong backing from the U.S. government, which included it in the U.S. Digital Asset Stockpile in March. Additionally, members of the Trump family have shown public support for Ethereum, giving it some credibility. But its current slump shows that even well-established cryptocurrencies aren't immune to market shifts.

Meme Coins: Dogecoin and Shiba Inu See Huge Losses

Meme coins, which are often seen as high-risk investments, have been hit even harder by the new tariffs. Dogecoin (DOGE), the largest meme coin, has fallen by 45% this year, while Shiba Inu (SHIB) is down 37%. Even smaller meme coins like Pepe (PEPE) have dropped more than 50%.

The Trump meme coin (TRUMP), a new addition to the meme coin space, has seen a staggering 84% drop since its launch earlier this year. This sharp decline highlights the waning interest in meme coins, which were already considered volatile and speculative investments before the tariffs.

As the market sentiment shifts, meme coins have become a risky bet, and many investors are steering clear of them. Even well-known figures in the crypto space, like Cathie Wood of Ark Invest, have suggested that most meme coins will likely become worthless in the near future.

Should You Buy These Cryptos Now?

With many cryptocurrencies down by 20% to 50% in recent months, some investors may see this as an opportunity to buy low. But with the ongoing market uncertainty, it’s important to proceed with caution.

One crypto that may be worth watching is Solana. Despite the market downturn, Solana’s blockchain is seeing increasing activity, and it’s starting to challenge Ethereum as a leading blockchain. In 2023, Solana saw an impressive price increase of over 900%, showing its potential to bounce back.

However, it’s important to remember that the current economic climate is tough, with recession concerns, inflation, and geopolitical tensions making investors wary of cryptocurrencies in general. For now, Bitcoin remains a safer choice for those looking for a stable investment, as it has historically performed better in times of economic uncertainty.

Also Read: Bitcoin Gains Ground as XRP and Ethereum Face Growing Market Pressure