Tomiwabold Olajide
Traders took a risky approach on Wednesday as cryptocurrencies surged alongside stocks
The crypto market was trading nearly 4% higher at press time, helped at least in part by weaker than forecast inflation data that fueled bets that the Federal Reserve could move to a slower pace of rate hikes, a view taken with a grain of salt Market watchers say officials may still be a long way from hitting their target.
Traders took a risk on Wednesday as cryptocurrencies surged alongside stocks. The CPI rose 8.5% yoy in July, slowing from a 9.1% rise in June, the largest in four decades. Both the core and the overall measures were below the forecast.
Analysts note that overall this is good news for risky assets. The market is now pricing in a 50 basis point move into the September session, after which the market reacted in kind.
DeFi coin rally
Leading the crypto market recovery has been the major decentralized finance (DeFi) coins, which have posted double-digit gains over the past 24 hours, according to CoinMarketCap data, outperforming top cryptocurrencies like Bitcoin (BTC) and Ether (ETH). Cryptocurrency lending platform Aave’s native asset, AAVE, rose 12.68% to $109.73. Fantom (FTM) was also up double digits, up 13.82% at $0.41. This follows in part after Binance introduced FTM locked staking with up to 18.70% rewards for users.
To sue
Uniswap’s Decentralized Exchange (DEX) UNI traded at $9.33, up 13.70%. Bitcoin, the leading cryptocurrency by market cap, traded at $23,968, up 3.63%, while Ethereum (ETH) changed hands at $1,841, up 8.78%.
Although several DeFi coins such as Chainlink, Lido DAO and the above posted gains, it is still fair to say that the fundamentals remain largely unchanged.
The total value locked (TVL) in the DeFi protocol has seen a slight increase (+0.97%) to a record $69.28 billion at the time of writing, according to DefiLlama data. Total locked value is the number of user funds deposited in DeFi protocols and is one of the most commonly used metrics to evaluate the growth of the sector.
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