- UNI, MKR, LDO, ENA lead top DeFi tokens with double-digit gains amid rising TVL.
- ARB, OP, STRK also post strong gains in L2 sector.
- DeFi and L2 tokens could see more growth if Ethereum continues march higher.
Ethereum ecosystem tokens — especially DeFi and Layer 2 coins — have surged following ETH's recent rally after optimism that the Securities & Exchange Commission (SEC) would approve spot ETH ETFs.
Read more: Ethereum could see new all-time high following Fidelity and Grayscale updates on ETF application
DeFi and Layer 2 could be set for explosion
Several Ethereum-based DeFi tokens have followed Ethereum in its recent rally, posting double-digit gains in the past 24 hours. Considering DeFi led the bull cycle of late 2020 into 2021, many had expected it to also take the lead in this current cycle.
However, they largely underperformed compared to Bitcoin and Solana-based coins, which were at the forefront of the crypto market's peak in March.
Also read: Week Ahead: Ethereum and DeFi to come under spotlight this week
But Ethereum's recent rise is beginning to push the DeFi narrative as ETH-based tokens across lending/borrowing, decentralized exchanges, and staking/restaking have seen impressive growth since Tuesday.
Lido Dao (LDO) posted nearly a 23% gain, Maker (MKR) jumped 13%, AAVE rose more than 16%, and Ethena (ENA) also increased by 23%. Synthetix (SNX) and Uniswap (UNI) gained 14% and 20%, respectively.
This follows a recent X post from Unisawp founder Hayden Adams, who commented on the upcoming FIT21 bill. He stated that Congress's acknowledgment of DeFi as fundamentally different is a "huge deal and a clear step in the right direction for the country."
Read more: Ethereum sees a 16% spike as Bloomberg analysts surprisingly increase approval odds to 75%
Ethereum Layer 2 tokens also joined DeFi coins in seeing huge price increases. Arbitrum (ARB) rose by 20%, Optimism (OP) posted a 14% gain, and Starknet (STRK) increased by 11%.
If Ethereum continues its march higher, the ripple effect could boost several DeFi and L2 tokens to reach new highs.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch
Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction
Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs
The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot Exchange Traded Funds (ETFs) in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.