On Tuesday, the total valuation of the cryptocurrency market reached $3.54 trillion, a new all-time high. The cryptocurrency market is currently on track for six consecutive positive daily trading sessions. Bulls took control of the derivatives market as bears accounted for 51% of the $343.14 million liquidations recorded on Tuesday.
Altcoin market updates: Ethereum breaks through $3.7 million resistance, Tron and Avalanche gain momentum
Ethereum price outperformed Bitcoin on Wednesday, trading at $3,700, boosted by reports that the Securities and Exchange Commission (SEC) may approve staking of crypto ETFs in the US. The milestone has been surpassed.
Amid expectations for corporate participation in DeFi, the bullish mood has spread to prominent Proof-of-Stake networks such as Tron (TRX) and Avalanche (AVAX). The rally continued with an additional 17% gain on Wednesday amid several bullish catalysts, including founder Justin Sun's $30 million investment in the Trump World Liberty Financial (WLFI) token. , Tron (TRX) price reached $0.40. Avalanche (AVAX) price also rose 6.5%, mirroring Ethereum’s 6% rise on the day.
Chart of the day: DeFi market cap reaches $135 billion due to Fed rate cut
The crypto sector's positive reaction to Donald Trump's reelection has dominated media discussions over the past month. However, a closer look at the trends in on-chain data reveals the significant impact of the shift in macroeconomic policy by the US central bank, the Federal Reserve.
On Nov. 7, the Federal Reserve announced a 25 basis point rate cut, following an initial 50 basis point cut in September, marking the first time in four years that the regulator has cut interest rates for two consecutive months.
This coincided with significant dovish actions by the Bank of England (BoE) and the European Central Bank (ECB).
DeFi Market Capitalization Total | TradingView
As a result, investors are increasingly shifting their funds to decentralized finance (DeFi) services to increase profits as yields on government bonds and other risk-off securities decline.
In support of this story, the TradingView chart above shows the total market capitalization of DeFi-focused crypto projects.
As of November 6th, DeFi's market capitalization was $73.2 billion. However, since the Fed's latest rate cut decision, this number has increased by 88%, reaching the $135 billion milestone on December 4th.
This shows that the rise in the cryptocurrency market is being driven not only by speculative demand for major assets, but also by inflows from core yield bearish DeFi services and new investments in a dovish macroeconomic environment. Suggests.
Unsurprisingly, prominent DeFi-focused layer 1 projects such as BinanceCoin (BNB), Solana (SOL), Tron (TRX), and Cardano (ADA) recorded gains of over 100% during this period. I did.
The next Fed interest rate decision is scheduled for December 17th.
With analysts pricing in a 66% chance of further rate cuts, further inflows into the DeFi sector could push the broader crypto market to new peaks in the coming weeks.
Latest crypto news:
Bitcoin plummets to $62,000 on Upbit while South Korea declares martial law
After South Korean President Yoon Seok-yeol declared emergency martial law on December 3, 2024, citing political turmoil and the threat from North Korea, the price of Bitcoin fell by more than 30% on Upbit to 62,000. It became a dollar.
This announcement caused panic among crypto investors, leading to a massive sell-off in the local market.
Bitcoin has recovered above $89,000 on Upbit, but the local market remains disconnected from global exchanges, with Bitcoin trading around $93,600, creating an arbitrage gap of $4,000. I am.
Enron announces relaunch focused on energy and blockchain
Enron, infamous for its devastating bankruptcy and fraud scandal in 2001, has announced plans to restart with a bold new vision aimed at tackling global energy challenges.
Notably, the company hinted that it would explore blockchain and cryptography as part of its pivot to “permissionless innovation,” sparking curiosity about its possible entry into the digital asset space.
The surprising announcement reignites debate over the legacy of one of the most infamous corporate bankruptcies in history.
Donald Trump nominates Paul Atkins as SEC Chairman
President-elect Donald Trump has officially named Paul Atkins as the new SEC Chairman.
Announced via a post on Truth Social, President Trump praised Atkins' capital markets leadership and regulatory expertise, highlighting his commitment to fostering innovation and addressing digital asset challenges.
Atkins, a former SEC commissioner and CEO of Patmac Global Partners, is expected to play a pivotal role in shaping policy around emerging financial technologies, particularly blockchain and cryptocurrencies.
The appointment signals a potential shift in the SEC's approach to digital assets, signaling that President Trump will focus on “common sense regulation” and innovation as a priority.
The appointment sparks optimism within the crypto sector, with expectations for more balanced oversight under Atkins' leadership after intense scrutiny under the outgoing administration led by Gary Gensler. are.
