• The total cryptocurrency market valuation hit $3.54 trillion on Tuesday, a new all-time high.
• The crypto market is now on course for its sixth consecutive positive daily trading session. 
• Bull seized control in the derivatives markets as bears booked 51% of the $343.14 million liquidations recorded on Tuesday.  

Altcoin market updates: Ethereum breaches $3.7K resistance, while Tron and Avalanche gain traction

Ethereum price crossed the $3,700 mark as it outperformed Bitcoin on Wednesday amid positive tailwinds from news reports that the Securities & Exchange Commission (SEC) could approve staking for crypto ETFs in the US.

• Amid expectation of corporate participation in DeFi, the bullish sentiment spread toward prominent 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 Trump World Liberty Financial (WLFI) token. 
• Avalanche (AVAX) price also increased by 6.5%, mirroring Ethereum’s 6% surge on the day. 

Chart of the day: DeFi market cap hits $135 billion on Fed rate cut impact

The cryptocurrency sector’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 reveal a pronounced impact of the macroeconomic policy shift 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 the regulator slashed rates in two consecutive months.

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

Total DeFi Market Cap | TradingView

Amid the resulting decline in yield on government bonds and other risk-off securities, investors are increasingly shifting capital toward decentralized finance (DeFi) services to shore up gains. 

Confirming this narrative, the TradingView chart above shows the aggregate market capitalization of DeFi-focused crypto projects.

The Total DeFi market cap stood at $73.2 billion as of November 6. But since the Fed’s latest rate cut decision, the figure has increased by 88% to hit the $135 billion milestone on December 4. 

This suggests that the crypto market rally has not only been driven by speculative demand for key assets but also by inflows from fresh investments in core yield-bearish DeFi services and the dovish macro economic landscape.

Unsurprisingly, prominent DeFi-focused Layer-1 projects such as BinanceCoin (BNB), Solana (SOL), Tron (TRX) and Cardano (ADA) have recorded gains in excess of 100% during this period.  

The next Fed rate decision is slated for December 17.

With analysts pricing in a 66% chance of another rate cut, further influx of funds in the DeFi sector could see broader crypto markets hit new peaks in the weeks ahead. 

Crypto news updates: 

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

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

The announcement triggered widespread panic among crypto investors, triggering mass sell-offs in local markets. 

Although Bitcoin recovered above $89,000 on Upbit, the local market remains disconnected from global exchanges, where the asset trades around $93,600, creating a $4,000 arbitrage gap. 

• Enron announces relaunch with a focus 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 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 asset space.

This surprising announcement has reignited debates over the legacy of one of history’s most notorious corporate collapses.

 

• Donald Trump nominates Paul Atkins as SEC Chair

President-elect Donald Trump has officially nominated Paul Atkins as the new Chair of the SEC. 

Announced via a Truth Social post, 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 pivotal role in shaping policies for emerging financial technologies, particularly blockchain and cryptocurrencies.

This appointment marks a potential shift in the SEC’s approach toward digital assets with Trump signaling a focus on “common sense regulations” and innovation as priorities.

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

 

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