Analysts at Bernstein expect that as the regulatory landscape evolves, liquidity in the crypto market will begin shifting away from meme coins back to DeFi projects, NFTs, and gaming tokens, The Block reports.

According to Bernstein’s report, under former SEC Chair Gary Gensler, the industry faced strict restrictions, pushing market participants toward less regulated sectors.

The situation began to change with the arrival of the new administration. Paul Atkins, known for his crypto-friendly stance, has been nominated as the leading candidate for SEC chair under President Donald Trump. Additionally, the SEC has formed a digital assets task force led by Hester Peirce.

The commission is already showing policy shifts: following the conclusion of lawsuits against Coinbase and OpenSea, the regulator has ended its crackdown on Robinhood’s crypto division.

Bernstein also noted a decline in meme coin hype after several major failures. In one instance, Argentine President Javier Milei endorsed the LIBRA project, leading to trader losses and reputational damage for the politician.

Analysts believe this “pause” will allow the market to focus on more sustainable sectors such as stablecoins and real-world assets (RWA). According to them, stablecoins have the potential to improve international payments, banking settlements, and money transfers.

Bernstein also predicts an increase in trading volumes driven by new tokenized asset listings and growing stablecoin demand. Analysts name Robinhood as a key beneficiary, as the company prepares to launch staking, derivatives, and stablecoin-related products following its acquisition of Bitstamp.

Previously, analysts signaled the start of the next phase of Bitcoin’s bull market amid Trump administration initiatives.