- The total valuation of the cryptocurrency market reached $3.54 trillion on Tuesday, a new all-time high.
- The crypto market is now on track for its sixth consecutive positive daily trading session.
- Bull took control of derivatives markets as bears took 51% of the $343.14 million liquidations recorded on Tuesday.
Altcoin Market Updates: Ethereum Breaks $3.7K Resistance, While Tron and Avalanche Gain Ground
Ethereum price crossed the $3,700 mark and outperformed Bitcoin on Wednesday, amid positive news that the Securities & Exchange Commission (SEC) may approve the staking of crypto ETFs in the United States.
- Amid expectations of corporate participation in DeFi, bullish sentiment has spread to major proof-of-stake networks, including Tron (TRX) and Avalanche (AVAX).
- Tron (TRX) price hit $0.40 as the rally continued with another 17% surge on Wednesday amid several bullish catalysts, including founder Justin Sun’s $30 million investment in the token Trump World Liberty Financial (WLFI).
- The price of Avalanche (AVAX) also rose 6.5%, reflecting Ethereum’s 6% rise that day.
Chart of the Day: DeFi Market Cap Hits $135 Billion Due to Impact of Fed Rate Cut
The cryptocurrency industry’s positive reaction to Donald Trump’s re-election has dominated media discourse over the past month. However, a closer look at on-chain data trends reveals a pronounced impact of the change in macroeconomic policy from the US central bank, the Federal Reserve (Fed).
On November 7, the Fed announced a 25 basis point rate cut after an initial 50 basis point cut in September, marking the first time in four years that the regulator had cut rates for two consecutive months.
This also coincided with significant accommodative measures from the Bank of England (BoE) and the European Central Bank (ECB).
Total market capitalization of DeFi | Trading View
Amid the resulting decline in yields on government bonds and other risk-free securities, investors are increasingly moving their capital into decentralized finance (DeFi) services to consolidate their gains.
Confirming this narrative, the TradingView chart above shows the overall market capitalization of DeFi-focused crypto projects.
The total market capitalization of DeFi stood at $73.2 billion as of November 6. But since the Fed’s last rate cut decision, that figure has risen 88% to hit the $135 billion mark on Dec. 4.
This suggests that the crypto market rally has not only been driven by speculative demand for key assets, but also by influxes of new investments in bearish-yielding core DeFi services and the accommodative macroeconomic landscape.
Unsurprisingly, major DeFi-focused layer 1 projects such as BinanceCoin (BNB), Solana (SOL), Tron (TRX), and Cardano (ADA) have seen gains greater than 100% during this period.
The Fed’s next rate decision is scheduled for December 17.
With analysts putting the chance of another rate cut at 66%, a fresh influx of funds into the DeFi sector could see broader crypto markets reach new highs in the coming weeks.
Crypto News Updates:
- Bitcoin Drops to $62,000 on Upbit Amid South Korea’s Declaration of Martial Law
Bitcoin price plunged more than 30% to $62,000 on Upbit after South Korean President Yoon Suk Yeol declared emergency martial law on December 3, 2024, citing political unrest and threats from Korea from the North.
The announcement sparked widespread panic among crypto investors, triggering massive sell-offs in local markets.
Although Bitcoin has recovered above $89,000 on Upbit, the local market remains disconnected from global exchanges, where the asset is trading around $93,600, creating an arbitrage gap of $4,000.
- Enron announces relaunch focused on energy and blockchain
Enron, infamous for its catastrophic bankruptcy and fraud scandal in 2001, has announced plans to relaunch with a bold new vision aimed at tackling the world’s energy challenges.
Notably, the company has hinted at exploring blockchain and crypto technologies as part of its focus on “permissionless innovation,” sparking curiosity about its potential entry into the digital asset space.
The surprising announcement reignited debates over the legacy of one of the most notorious corporate collapses in history.
- Donald Trump nominates Paul Atkins as SEC chairman
President-elect Donald Trump has officially nominated Paul Atkins as the new chairman of the SEC.
Announced via a Truth Social article, Trump praised Atkins for his leadership in capital markets and regulatory expertise, emphasizing his commitment to fostering innovation and addressing digital asset challenges.
Atkins, a former SEC commissioner and CEO of Patomak Global Partners, is expected to play a central role in shaping policy related to emerging financial technologies, particularly blockchain and cryptocurrencies.
The appointment marks a potential shift in the SEC’s approach to digital assets, with Trump signaling a focus on “common sense regulations” and innovation as priorities.
The appointment has sparked optimism within the crypto industry, which expects more balanced oversight under Atkins’ leadership after increased scrutiny under the regime led by outgoing Gary Gensler.
