Key takeaways:
- The cryptocurrency market cap increased by more than 5% today, which led to positive price movement in the majority of digital assets
- Bitcoin avoided the 10th consecutive weekly red candle and nearly broke its three-week high
- Bullish activity among leading DeFi coins and the growth of TVL could lead to a broader resurgence in the DeFi sector
Bitcoin and Ethereum gained more than 5% each and came close to breaking their respective three-week highs
The cryptocurrency market cap increased by over 5% to $1.34 trillion in the last 24 hours, leading to a notably positive price action across the board. Case in point, only 4 out of the top 100 (excluding stablecoins) digital currencies traded in the red zone at press time.
Bitcoin hit the $31,500 price point on the tailwind of a 6% 24-hour price change and came awfully close to breaking its three-week high of $32,290, reached on the last day of May. Looking at the TradingView chart, the world’s largest digital assets narrowly avoided the 10th weekly consecutive red candle. With a series of 9th consecutive red candles, Bitcoin extended its previous record from 6 to 9.
Like Bitcoin, Ethereum has been trading firmly in the green zone over the last 24 hours – the crypto gained over 6% and topped $1,900 after nearly a week of trading at sub $1,900 levels. The second largest crypto is now trading less than 9% removed from its three-week high of $2,090, reached on May 23.
Etherum’s positive price activity seemingly acted as a catalyst for numerous altcoins, many of which experienced double-digit gains to start the week, with Cardano and Solana being the most prominent examples.
Cardano and Solana’s rallies hinting at the market reversal in the DeFi space?
Both Cardano and Solana had very similar price movements in the past week – both coins hit their weekly highs on the last day of May, only to slide back to their previous price ranges throughout the first week of June.
The two native coins of leading Ethereum smart contract competitors gained more than 12% in the last 24 hours and solidified their spots on the list of today’s largest gainers in the cryptocurrency top 100.
Along with price increases in the value of leading DeFi coins, the total value locked (TVL) in decentralized finance (DeFi) products and services increased by more than 3%, according to DeFiLlama. The modest increase comes at a dire time for DeFi – TVL more than halved since April 2022, having fallen from $230 billion to $110 billion in June.
With the notable price increases in the value of leading DeFi assets, positive growth in TVL after months of decline, and the highly-anticipated transition of Ethereum to Proof-of-Stake (PoS) we could be seeing a trend reversal in the near term.
