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The strategic crypto reserve will fuel ecosystem growth

Opinion by: Tim Haldorsson, founder of Lunar Strategy

When US President Donald Trump announced the US strategic crypto reserve on March 2, the immediate focus fell on the price surges of the included coins. Behind the market excitement lies a much bigger story that extends far beyond the named assets themselves. 

The real opportunity lies not in holding Bitcoin (BTC), Ether (ETH), XRP (XRP), Solana (SOL) and Cardano (ADA) — it’s in building on these newly legitimized platforms.

This government endorsement creates fertile ground for an entire ecosystem of projects, unleashing innovation across multiple sectors while creating investment opportunities that could define the next wave of blockchain adoption.

Projects on legitimized platforms are ready for growth

The strategic reserve announcement fundamentally changed the risk profile for projects building on these networks. Developers quietly building on Ethereum, Solana and Cardano now find themselves on government-approved foundations. This validation removes significant uncertainty — a crucial factor for attracting users and capital.

When a nation plans to hold these assets in reserve, it signals a long-term commitment to their viability. For projects building on these networks, this increases confidence that their underlying platform won’t face existential regulatory threats. Infrastructure projects particularly stand to benefit; layer-2 scaling solutions for Ethereum, developer tooling for Solana and interoperability solutions for Cardano can now operate with greater certainty about their foundation’s future.

The early evidence already supports this shift. After the announcement, Cardano’s ecosystem saw renewed attention, with significant whale accumulation and increased trading volume across its decentralized finance (DeFi) protocols. Projects such as Minswap and Liqwid Finance experienced growing interest as users gained confidence in the network’s long-term viability. Ethereum and Solana ecosystems are seeing similar effects, with capital flowing to projects that leverage their unique strengths.

Gaining investor attention

Not all projects will benefit equally from this validation. Specific sectors are positioned to capture disproportionate growth as retail and institutional investors recalibrate their approach to these now-endorsed chains.

DeFi applications stand out as immediate beneficiaries. With multiple networks now government-backed, crosschain DeFi protocols that facilitate liquidity between Ethereum, Solana and Cardano are seeing renewed interest. The government’s implicit endorsement of multiple chains reinforces the vision of a multichain future rather than a winner-take-all scenario.

Infrastructure projects that connect these networks will also thrive. Crosschain bridges, already vital for a fragmented blockchain landscape, become even more critical when multiple networks have official backing. Projects building on identity solutions could also see significant interest — these government-approved networks make ideal foundations for digital identity systems requiring trust and stability.

Recent: Does XRP, SOL or ADA belong in a US crypto reserve?

Finally, the blockchain gaming sector, which had already shown strong growth with 7.4 million daily active wallets by the end of 2024, could accelerate as developers flock to these legitimized platforms. Games built on Solana’s speed or Cardano’s security can point to government endorsement as a credibility booster when seeking partners or users.

Assessing project potential through key metrics

For investors looking to capitalize on this ecosystem growth, several key metrics separate promising projects from mere speculation.

Total value locked (TVL) provides a window into genuine usage and trust. Projects showing significant TVL growth after the announcement demonstrate real traction. Developer activity remains another critical indicator: Ethereum remains the most important developer ecosystem, with thousands of active monthly contributors. At the same time, Solana experienced the fastest developer growth in 2024, particularly in emerging markets like India.

User adoption metrics tell an equally important story. Daily active wallets, transaction volumes and community growth reveal whether a project captures actual market share or generates hype. Strong partnerships also signal project strength — those securing collaborations with established institutions gain credibility and distribution channels.

The most promising projects combine these metrics with robust security measures and regulatory compliance — increasingly important factors now that these networks have government attention. Projects anticipating and addressing compliance requirements position themselves to benefit from institutional adoption.

The venture capital shift

Historically, government endorsements have led to increased institutional investment. The strategic reserve announcement could recalibrate how venture capital flows through the crypto ecosystem if this pattern holds. Venture capitalists, who were previously cautious about regulatory uncertainty, now have more precise signals about what networks have an unofficial blessing.

We may see venture firms double down on projects building on Ethereum, Solana and Cardano at the expense of alternative chains. New dedicated funds focusing specifically on government-endorsed networks could emerge, similar to how funds reorient around policy shifts in other sectors.

This shift extends beyond where capital flows and influences what types of projects are funded. Compliance-focused startups, infrastructure plays and enterprise-ready applications will attract more attention than purely speculative projects. VCs will increasingly favor teams that understand how to navigate the intersection of innovation and regulation.

For startups, this creates both opportunity and challenge. Building on these endorsed networks offers a more straightforward path to funding, but expectations around compliance and security will rise accordingly. The days of raising millions on concepts alone are giving way to the demand for solid execution and regulatory awareness.

Interoperability becomes critical

With multiple chains now part of the strategic reserve, interoperability solutions take center stage. Projects enabling seamless movement between Ethereum, Solana and Cardano stand to benefit tremendously from this new multichain reality.

Crosschain bridges like Wormhole, initially connecting Ethereum and Solana, will likely expand to include Cardano as the demand for connectivity between all endorsed networks grows.

Protocols facilitating crosschain governance or identity will similarly find increased relevance as assets and users flow between networks.

The government’s endorsement of multiple chains effectively validates the multichain thesis — that different networks serve different use cases rather than one blockchain dominating all activity. This creates space for infrastructure that connects these specialized systems into a cohesive whole.

The growth timeline

The effects of this government endorsement will unfold over multiple time horizons — the immediate price rallies and attention spikes we’ve already witnessed. The more substantial ecosystem growth will develop over months and years.

Expect new project announcements and funding rounds in the next three to six months, explicitly citing the strategic reserve to validate their approach. Development activity on these networks will accelerate as previously hesitant teams about regulatory risk jump in.

Within a year, we’ll likely see the first major institutional products built on these networks launch with formal regulatory approval. The venture funding deployed now will begin producing tangible applications across DeFi, identity, gaming and enterprise sectors.

By the two-to-three-year mark, if historical patterns from other government-validated technologies hold, these blockchain ecosystems could become mainstream infrastructure, extending far beyond their current use cases. As the internet grew from a government project to a commercial ecosystem, these networks could evolve from reserve assets to fundamental digital infrastructure.

The strategic reserve announcement might begin a new phase of worldwide blockchain adoption for investors, developers and users.

Opinion by: Tim Haldorsson, founder of Lunar Strategy.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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Starmer and Macron agree need for ‘new deterrent’ to stop small boat crossings

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Starmer and Macron agree need for 'new deterrent' to stop small boat crossings

Sir Keir Starmer and Emmanuel Macron have agreed the need for a “new deterrent” to deter small boats crossings in the Channel, Downing Street has said.

The prime minister met Mr Macron this afternoon as part of the French president’s state visit to the UK, which began on Tuesday.

High up the agenda for the two leaders is the need to tackle small boat crossings in the Channel, which Mr Macron said yesterday was a “burden” for both the UK and France.

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The small boats crisis is a pressing issue for the prime minister, given that more than 20,000 migrants crossed the English Channel to the UK in the first six months of this year – a rise of almost 50% on the number crossing in 2024.

Sir Keir is hoping he can reach a deal for a one-in one-out return treaty with France, ahead of the UK-France summit on Thursday, which will involve ministerial teams from both nations.

The deal would see those crossing the Channel illegally sent back to France in exchange for Britain taking in any asylum seeker with a family connection in the UK.

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However, it is understood the deal is still in the balance, with some EU countries unhappy about France and the UK agreeing on a bilateral deal.

French newspaper Le Monde reports that up to 50 small boat migrants could be sent back to France each week, starting from August, as part of an agreement between Sir Keir and Mr Macron.

A statement from Downing Street said: “The prime minister met the French President Emmanuel Macron in Downing Street this afternoon.

“They reflected on the state visit of the president so far, agreeing that it had been an important representation of the deep ties between our two countries.

“Moving on to discuss joint working, they shared their desire to deepen our partnership further – from joint leadership in support of Ukraine to strengthening our defence collaboration and increasing bilateral trade and investment.”

It added: “The leaders agreed tackling the threat of irregular migration and small boat crossings is a shared priority that requires shared solutions.

“The prime minister spoke of his government’s toughening of the system in the past year to ensure rules are respected and enforced, including a massive surge in illegal working arrests to end the false promise of jobs that are used to sell spaces on boats.

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“The two leaders agreed on the need to go further and make progress on new and innovative solutions, including a new deterrent to break the business model of these gangs.”

Chris Philp, the shadow home secretary, seized on the statement to criticise Labour for scrapping the Conservatives’ Rwanda plan, which the Tories claim would have sent asylum seekers “entering the UK illegally” to Rwanda.

He said in an online post: “We had a deterrent ready to go, where every single illegal immigrant arriving over the Channel would be sent to Rwanda.

“But Starmer cancelled this before it had a chance to start.

“Now, a year later, he’s realised he made a massive mistake. That’s why numbers have surged and this year so far has been the worst in history for illegal channel crossings.

“Starmer is weak and incompetent and he’s lost control of our borders.”

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Ex-Tory chairman Sir Jake Berry defects to Reform

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Ex-Tory chairman Sir Jake Berry defects to Reform

Ex-Tory chairman Sir Jake Berry has defected to Reform, in the latest blow to the Conservatives.

The former MP for Rossendale and Darwen, who served as Northern Powerhouse minister under Boris Johnson and lost his seat last year, said he had defected to Nigel Farage’s party because the Tories had “lost their way”.

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Reform UK confirmed the defection to Sky News, which was first broken by The Sun.

Speaking to the paper, Sir Jake said Mr Farage’s party was the “last chance to pull Britain back from terminal decline”.

“Our streets are completely lawless,” he said.

“Migration is out of control. Taxes are going through the roof.

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“And day after day, I hear from people in my community and beyond who say the same thing: ‘This isn’t the Britain I grew up in’.”

Sir Jake accused his former party of “abandoning the British people” but said he was not “giving up”.

“I’m staying. And I’m fighting.

“Fighting for the Britain I want my kids, and one day, my grandkids, to grow up in.”

Mr Farage welcomed what he said was “a very brave decision” by Sir Jake.

“His admission that the Conservative government he was part of broke the country is unprecedented and principled,” he added.

A Conservative Party spokesman said: “Reform support increasing the benefits bill by removing the two-child cap, and nationalising British industry. By contrast the Conservatives, under new leadership, will keep making the case for sound money, lower taxes and bringing the welfare bill under control.

“We wish Jake well in his new high spend, high tax party.”

Sir Jake’s defection to Reform comes just days after former Conservative cabinet minister David Jones joined Reform UK, which continues to lead in the polls.

European Research Group (ERG) chair Mark Francois (left), and deputy chair David Jones, speak to the media outside Portcullis House, Westminster
Image:
Former Welsh secretary David Jones (R) alongside Tory MP Mark Francois. Pic: PA

Mr Jones, who was MP for Clwyd West from 2005 until standing down in 2024, said he had quit the Tories after “more than 50 years of continuous membership”.

Sir Jake was the MP Rossendale and Darwen in Lancashire between 2010 and 2024, when he was defeated by Labour’s Andy MacNae.

He held several ministerial posts including in the Department for Housing, Communities and Local Government, Energy and Climate Change and the Cabinet Office.

Nigel Farage holds up six fingers to indicate the six votes his party's candidate won by in the Runcorn and Helsby by-election.
Pic: Reuters
Image:
Nigel Farage after winning the Runcorn and Helsby by-election.
Pic: Reuters

He was also chairman of the Conservative Party from September to October 2022, under Liz Truss.

Announcing his defection – which comes a year after the Tories suffered their worst ever election defeat – Sir Jake said “Britain was broken” and “the Conservative governments I was part of share the blame”.

“We now have a tax system that punishes hard work and ambition,” he said.

“Just this week, we saw record numbers of our brightest and best people leaving Britain because they can’t see a future here. At the same time, our benefits system is pulling in the world’s poor with no plan for integration and no control over who comes in.

“If you were deliberately trying to wreck the country, you’d be hard-pressed to do a better job than the last two decades of Labour and Tory rule.

“Millions of people, just like me, want a country they can be proud of again. The only way we get that is with Reform in government. That’s why I’ve resigned from the Conservative Party. I’m now backing Reform UK and working to make them the next party of government.”

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He added: “And with Nigel Farage leading Reform, we’ve got someone the country can actually trust. He doesn’t change his views to fit the mood of the day. And people respect that. So do I. That’s why I believe he should be our next prime minister.”

A Labour Party spokesperson said: “Not content with taking advice from Liz Truss, Nigel Farage has now tempted her Tory Party chairman into his ranks.

“It’s clear Farage wants Liz Truss’s reckless economics, which crashed our economy and sent mortgages spiralling, to be Reform’s blueprint for Britain. It’s a recipe for disaster and working people would be left paying the price.”

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Controversial welfare bill passes final Commons stage – but only after another concession

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Controversial welfare bill passes final Commons stage - but only after another concession

Sir Keir Starmer’s watered down welfare bill has passed its final stage in the Commons, after another concession was made to MPs.

The Universal Credit and Personal Independence Payments Bill passed by 336 votes to 242 on Wednesday night – a majority of 94.

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In a bid to thwart further opposition to the bill following last week’s climbdown, the government said it would not try to introduce any more reforms to personal independence payments (PIP) until a review by work and pensions minister Sir Stephen Timms on the assessment process has concluded.

Sir Stephen said he wanted to finish his review by next autumn, but that the government would not agree to complete the review in 12 months as some MPs wanted.

Marie Tidball, the Labour MP who had called for the 12-month limit, later signalled she was happy with the government’s compromise.

Ministers also agreed to her calls to have a majority of the taskforce looking at PIP to be disabled or from disability organisations, and for the outcome of the review to come before any PIP changes. It will also be voted on by MPs.

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A total of 47 Labour MPs have rebelled against the government to vote against its welfare reforms.

Mother of the House Diane Abbott, former minister Dawn Butler, Andy McDonald, Stella Creasy and Jonathan Brash were among those in the “no” lobby.

Meanwhile, MPs rejected a separate amendment by Green MP Sian Berry, which called for the basic rate of universal credit to increase by 4.8% above inflation each year until 2030.

A total of 39 Labour MPs voted for scrapping the clauses that halved Universal Credit for new claimants – the only major cut left in the bill after the government made its concessions.

The passing of the bill will come as a relief to Sir Keir Starmer, who last week was forced into a humiliating climbdown over his flagship welfare package in the face of significant opposition from his own MPs.

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Prior to the vote last Tuesday, the government offered significant concessions including exempting existing personal independence payment claimants (PIP) from stricter new criteria and only freezing and cutting the universal credit health top-up for new applications.

As the vote last week unfolded, it offered further confessions amid concerns the bill could be voted down – notably, that changes in eligibility for PIP would not take place until a review he is carrying out into the benefit is published in autumn 2026.

They ended up voting for only one part of the plan: a cut to Universal Credit (UC) sickness benefits for new claimants from £97 a week to £50 from 2026/7.

A total of 49 Labour MPs voted against the bill – the largest rebellion in a prime minister’s first year in office since 47 MPs voted against Tony Blair’s Lone Parent benefit in 1997, according to Professor Phil Cowley from Queen Mary University.

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