Weekly Leading Cryptocurrency Increases in Period 32
In a significant development, President Trump signed an executive order in August 2025, allowing 401(k) retirement plans to access alternative assets, including digital currencies. This change could potentially unlock institutional money and give everyday investors a reason to take cryptocurrencies seriously again.
Let's delve into the adoption and performance of various cryptocurrencies that have been making waves this week.
Large-Cap and Mid-Cap Coins Show Strong Recovery
Several large-cap and established mid-cap cryptocurrencies have posted impressive gains this week. Polygon, formerly known as MATIC, and Stellar (XLM) are up 16.9% and 17.7% respectively, reflecting renewed investor confidence. Litecoin, Chainlink, Uniswap, and XRP have also shown strong, steady recoveries with growth rates of 13.0%, 12.8%, 11.5%, and 11.3% respectively.
Niche Tokens Face Hurdles
While large-cap and mid-cap coins are seeing a surge, smaller or niche tokens like Mantle, Ondo, and Pudgy Penguins face higher hurdles. These tokens have more limited market capitalization and liquidity, making them less likely to be widely offered to retirement investors until broader infrastructure, custody, and regulatory clarity improve.
Regulatory Shift Encourages Adoption
The Department of Labor (DOL) has rescinded its prior policy that urged "extreme care" in including crypto in retirement plans, moving to a historical neutral approach. This shift could encourage more 401(k) plan sponsors and providers to gradually adopt cryptocurrency options, potentially increasing demand and institutional legitimacy for these coins. However, industry experts expect adoption to be slow initially due to provider caution over costs, legal risks, and technology challenges.
Bitcoin in Recovery Mode
Bitcoin, the world's largest cryptocurrency, is in recovery mode after dipping below $115K. The new executive order may reshape the broader crypto adoption curve, with large-cap and mid-cap coins with better track records and infrastructure standing to benefit most initially.
ETH Liquid Staking Tokens Gain Traction
StETH, rETH, and weETH, ETH liquid staking tokens, are up between 6%-7%. Older, infrastructure-heavy projects like Stellar and Polygon are starting to benefit from the broader adoption narrative again.
Meanwhile, Ondo climbed 10.3% as interest in tokenized real-world assets continues to build momentum. And in the NFT sector, Pudgy Penguins (PENGU) jumped 9.3%, reflecting growing optimism.
In summary, the new executive order has reset the regulatory landscape to permit prudent inclusion of cryptocurrencies in 401(k) plans, likely increasing adoption over time. Large-cap and established mid-cap coins with better track records and infrastructure stand to benefit most initially, while niche cryptocurrencies like Pudgy Penguins will be more limited in early adoption due to higher perceived risks and limited exposure in retirement products.
[1] White House, Executive Order on Encouraging Competition in the American Economy, August 2025. [2] Investopedia, Cryptocurrencies in 401(k)s: What You Need to Know, August 2025. [3] Department of Labor, Fact Sheet: Cryptocurrency in 401(k) Plans, August 2025. [4] CoinDesk, 401(k) Plans Can Now Invest in Crypto, August 2025. [5] Forbes, Cryptocurrencies in 401(k) Plans: What You Need to Know, August 2025.
Technology and finance intersect in the growth of cryptocurrencies, as several large-cap and established mid-cap coins show strong recoveries this week, potentially benefiting from the regulatory shift allowing 401(k) retirement plans to access digital currencies. On the other hand, smaller or niche tokens may face hurdles in terms of limited market capitalization, liquidity, and regulatory clarity before they can be widely offered to retirement investors.
