DeFi Tokens Lead Crypto Rally as Post-Fed Hike Nerves Fade

Crypto markets extended their post-Fed hike bid into Friday, as decentralized finance (DeFi) and layer-2 tokens took over from privacy assets. The DeFi Select Index accelerated the fastest, surging by 8.3% since midnight UTC and 16% over the past 24 hours.

Bitcoin rose above $78,000 during the European morning, adding 2.1% since midnight UTC and 1.9% over the past 24 hours. However, it remains 5% below its monthly high of $82,284 set on September 4.

The shift to DeFi tokens is partly due to mounting market optimism surrounding friendly crypto regulations from the SEC and CFTC. Uniswap's token, UNI, surged by 30%, while Lido DAO (LDO) rose by 6.8% and Arbitrum (ARB) added 5.6%.

The cumulative open interest in Bitcoin futures ticked up to 680K BTC from 670K BTC since midnight UTC, a slight increase alongside the price gain. However, this represents a build-up of long positions, but overall positioning remains light.