ETH Sell-Off Sparks Concern as DeFi Activity Dips Amid Trump’s Tariff Hikes

Trump’s trade wars shake crypto: DeFi feels the heat. With U.S. President Donald Trump’s aggressive trade policies sparking global tension, the crypto market has entered a volatile spiral. Assets are whipsawing in value, and DeFi markets aren’t spared either.

As tariffs climb and confidence wanes, top cryptocurrencies are taking losses. Investors are treading carefully, bracing for the next hit while trying to recalibrate in this stormy new reality.

Check this out: Trump’s Tariffs and Crypto: PitchBook Weighs the Real Risk Ahead

Ethereum Slides on Trump’s Tariff Bombshell

In the wake of Donald Trump’s dramatic 104% tariff announcement on select Chinese products, ETH stumbled—plunging below $1,400 before regaining some ground. As of now, Ether trades at roughly $1,480.

The sudden dip marked a 5% daily loss, while Bitcoin weathered the storm with a smaller 2% decline.

Economic insights: China Turns U.S. Tariffs Into a Catalyst for Economic Growth

The gap between Ethereum and Bitcoin widened further, as ETH/BTC slid below 0.019 — a figure not witnessed in over five years.

With the crypto space steeped in prolonged instability, caution now reigns. Market participants are hesitant, unwilling to seize the discount, and unconvinced that a turnaround is coming any time soon.

Trade War Ripples: ETH/BTC Crashes to 2020 Levels as Markets React to Trump’s Tariffs

Whales Are Dumping — And It Looks Like Panic

One major Ethereum whale hit the eject button this week, selling off 10,000 ETH after 900 days of holding. The sale, at $1,578 per token, earned a $2.75 million profit — but left a theoretical $27.6 million on the table had they sold at the top. It’s the kind of exit that reeks of fear, not strategy.

Adding to the unease, World Liberty Financial, a project tied to Donald Trump’s family, sold off 5,471 ETH for roughly $8.01 million — well below its average entry point of $3,259. The sale closed deep in the red.

Large investors appear to be pivoting, adjusting their tactics to shield themselves from the growing risks of an unstable market. But for the rest of the players, such moves could stir trouble — amplifying market fluctuations and pushing asset prices even lower.

Crypto Updates: USD1 Airdrop Proposal from Trump-backed World Liberty Financial

DeFi Sees User Drop-Off as Centralized Platforms Regain Ground

Data from The Block reveals a notable decrease in user engagement on Ethereum’s decentralized exchanges. 

• DEX trading volume sank to $57 billion in March 2025, down from a peak of $112 billion in December 2024.
• The number of active unique addresses slid to 40,000 — a 12-month low, and well below the high of 95,000.

The retreat underscores a broader shift: investors are drifting toward centralized platforms, chasing the safety of deeper liquidity and swifter transaction processing.

Decentralized platforms still play a vital role in the trading ecosystem, holding about 13% of total spot trading volume.

Projects like Bebop and CoWSwap are leading a new wave of DeFi innovation, focused on optimizing routes and reducing slippage to bring traders back.

At the same time, investors are exploring cost-effective alternatives. With the rise of Layer 2 solutions and growing adoption of platforms like Solana, the focus is shifting to faster, cheaper, and more scalable trading environments.

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