DeFi and Layer-2 Tokens Lift Crypto Market Higher
The rally follows the Fed decision, with Uniswap, Starknet, and Arbitrum standing out as strong performers. The futures market is also picking up, while the SEC and CFTC take new regulatory steps.
Key Takeaways
- The crypto market kept climbing on Friday after the Federal Reserve's rate hike, with Bitcoin above $78,000 and nearly all CoinDesk 100 components in the green.
- DeFi tokens led the rally: the DeFi Select Index rose 8.3% since midnight and 16% in 24 hours, with Uniswap as the biggest gainer.
- Layer-2 tokens like Starknet and Arbitrum posted strong gains, while higher futures open interest pointed to more capital flowing into the market.
The crypto market extended its move higher on Friday after the Federal Reserve's rate hike, with DeFi and layer-2 tokens leading the way over privacy and safe-haven coins. Bitcoin climbed above $78,000 (€67,900), putting it 2.1% higher since midnight UTC and 1.9% higher over the past 24 hours. The broader tone was clearly risk-on, while nearly all CoinDesk 100 components were in the green.
DeFi Takes the Lead
The strongest move came from the DeFi Select Index, which rose 8.3% since midnight and gained 16% over 24 hours. Uniswap was one of the biggest drivers with a 25% gain in 24 hours, while Ethena and Lido also moved higher. That fits a market where investors are taking on more risk again after the shock of the rate hike. Recent attention on stablecoin liquidity on Uniswap also shows how quickly trading activity in this part of the market can pick up.
The derivatives market also showed more activity. Cumulative open interest in futures rose nearly 5% to $141.2 billion (€123 billion), while daily volume actually fell 3% to $95 billion (€82.7 billion). That suggests more capital is flowing into the market through positions again, instead of through fast momentum trading.
Layer-2 Tokens Move Higher
Layer-2 tokens joined Friday's DeFi rally. Starknet rose 18% on the day and 21% over 24 hours, Arbitrum gained 17%, and Stacks and Optimism also moved higher. That put Starknet at its highest level since June 19, while Arbitrum traded around 20.9 cents and had not been this high since January.
The move was not limited to one corner of the market. Solana rose 4.5% to $106.14 (€92), but the strongest action was in the ecosystem itself, where Raydium gained 16%. That suggests traders are mainly looking at DEX volume and DeFi activity, not a broad rally across all Solana tokens. The recent Raydium rally fits that picture, with extra attention on trading volume and new token launches on the platform.
Why This Matters
For European crypto investors, the main point is that the broad market rise is happening alongside a calmer macro backdrop. The 10-year yield slipped back below 5%, and Brent crude fell below $103 (€90) after oil had climbed to $109 (€95) earlier in the week. At the same time, new steps from the SEC and CFTC around crypto regulation are also playing out in the U.S., which could further increase attention on DeFi and tokenized assets.
