Ethereum price tops $3.7K as Tron and Avalanche lead the DeFi market rally

• The total cryptocurrency market valuation 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 the derivatives markets as bears accounted for 51% of the $343.14 million in liquidations recorded on Tuesday.

Altcoin Market Updates: Ethereum breaks $3.7K resistance as Tron and Avalanche gain traction

Ethereum price crossed $3,700 on Wednesday, outperforming Bitcoin, receiving positive tailwinds from news reports that the Securities & Exchange Commission (SEC) may approve staking for crypto ETFs in the US.

• Amid expectations of corporate involvement in DeFi, bullish sentiment spread to well-known proof-of-stake networks such as Tron (TRX) and Avalanche (AVAX).
• Tron (TRX) price hit $0.40 as the rally continued with another 17% increase on Wednesday, driven by several bullish catalysts including founder Justin’s $30 million investment Sun in the Trump World Liberty Financial (WLFI) token.
• The price of Avalanche (AVAX) also rose 6.5%, mirroring Ethereum’s 6% rise on the day.

Chart of the Day: DeFi market cap hits $135 billion due to impact of Fed rate cut

The cryptocurrency sector’s positive reaction to Donald Trump’s re-election dominated media discourse last month. However, a closer look at on-chain data trends shows a clear influence of the US Federal Reserve (Fed) macroeconomic policy shift.

On November 7, the Fed announced a 25 basis point rate cut, following an initial 50 basis point cut in September. This was the first time in four years that the regulator has cut interest rates in two consecutive months.

This also coincided with significant dovish measures from the Bank of England (BoE) and the European Central Bank (ECB).

Total DeFi market cap | TradingView

Given the resulting decline in yields on government bonds and other risk-averse securities, investors are increasingly shifting their capital to decentralized financial services (DeFi) to lock in profits.

The TradingView chart above confirms this representation and shows the total market cap of DeFi-focused crypto projects.

The total DeFi market cap was $73.2 billion as of November 6th. But since the Fed’s recent rate-cutting decision, the figure has risen 88%, reaching the $135 billion milestone on December 4.

This suggests that the crypto market rally was driven not only by speculative demand for key assets, but also by inflows from new investments in core DeFi services with declining returns and the temperate macroeconomic landscape.

Not surprisingly, 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.

The Fed’s next interest rate decision is scheduled for December 17th.

With analysts pricing in a 66% chance of another rate cut, further inflow of funds into the DeFi sector could see the broader crypto markets reach new highs in the coming weeks.

Crypto News Updates:

• Bitcoin crashes to $62,000 on Upbit due to South Korea’s declaration of martial law

Bitcoin price plunged over 30% to $62,000 on Upbit after South Korean President Yoon Suk Yeol declared a martial law state of emergency on December 3, 2024, citing political unrest and threats from North Korea.

The announcement caused widespread panic among crypto investors and sparked mass selling in local markets.

Although Bitcoin rallied to over $89,000 on Upbit, the local market remains disconnected from global exchanges, where the asset is trading at around $93,600, resulting in an arbitrage gap of $4,000.

• Enron announces relaunch with a focus on energy and blockchain

Enron, infamous for its disastrous 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 at exploring blockchain and crypto technologies as part of its pivot toward “permissionless innovation,” sparking curiosity about its potential entry into the digital assets space.

This surprise announcement has reignited debates over the legacy of one of the most infamous corporate collapses in history.

• Donald Trump appoints Paul Atkins as SEC chairman

President-elect Donald Trump has officially nominated Paul Atkins to be the new chairman of the SEC.

Trump praised Atkins for his leadership in capital markets and regulatory expertise, emphasizing his commitment to driving innovation and addressing the challenges of digital assets.

Atkins, a former SEC commissioner and CEO of Pomak Global Partners, is expected to play a critical role in shaping policies for new financial technologies, particularly blockchain and cryptocurrencies.

This appointment marks a potential shift in the SEC’s approach to digital assets, as Trump signals an emphasis on “common sense regulations” and innovation as priorities.

The nomination has sparked optimism in the crypto sector, which is anticipating more balanced oversight under Atkins’ leadership after intense scrutiny under the outgoing Gary Gensler-led regime.