Ethereum, Solana Surge Amid U.S. Trade Ease, AI Token Momentum

Ethereum and Solana Show Signs of Recovery Amid U.S. Trade Policy Adjustments and AI Token Momentum

Ethereum and Solana have shown signs of recovery following adjustments in U.S. trade policies and the momentum of AI tokens. The easing of trade penalties has not only influenced traditional markets but has also triggered a resurgence in cryptocurrency prices, signaling investor optimism.

According to Min Jung, an analyst at Presto Research, "Strong performers this cycle, such as SOL and XRP, led the recovery, as AI-related tokens rebounded."

Ethereum and Solana rebounded sharply on Monday evening, recovering after the U.S. administration's decision to halt trade penalties provided a boost to market sentiment. The second-largest cryptocurrency, Ethereum, rebounded to $2,881, following a drastic drop to $2,135 during Asian trading hours—marking its most significant one-day decline since May 2021. This volatility wiped out over $600 million in Ethereum futures, amplifying concerns among investors about market stability.

In comparison to Ethereum, Solana exhibited remarkable resilience, climbing 13.5% to $216 from an intraday low of $190, subsequently stabilizing at around $218. The increased trading volume of 27% highlights Solana's growing strength in various sectors, particularly in meme-coin trading and decentralized finance (DeFi). This performance underscores Solana's positioning as a robust contender in the current crypto landscape.

Interestingly, AI-related tokens, which suffered in the previous trading session, began to recover concurrently with Ethereum and Solana. Analysts attribute this to a shifting market dynamic where AI tokens are no longer viewed purely as speculative assets but are increasingly integrated into broader investment strategies. Investors appear to be capitalizing on the rebound, indicating a bullish sentiment across multiple tokens following the news from the U.S. trade front.

Geopolitical activities have played a substantial role in the recent crypto sell-off, with President Trump's previous tariff threats against key trading partners leading to $2.2 billion in crypto derivatives liquidations. This incident marks one of the worst market consolidations in recent history. However, some experts have noted that this figure may be an underrepresentation, attributing discrepancies to limitations in