DeFi and Layer 2 could explode
Many DeFi tokens on Ethereum have followed Ethereum's rise, posting double-digit gains in the past 24 hours. In 2020-2021, DeFi led the bull cycle and many predict it will continue to lead in the current cycle.
However, they have largely underperformed Bitcoin and Solana-based coins, which topped the crypto market in March. But Ethereum's recent price surge is accelerating the DeFi narrative as ETH-based tokens in the lending/borrowing, decentralized exchanges, and staking/restaking sectors have seen impressive growth since Tuesday .
This follows a recent post on X by Uniswap founder Hayden Adams, who commented on the upcoming FIT21 bill. He believes that Congress's recognition of DeFi is a big step in the right direction for the country.
Ethereum's Layer 2 token also joined DeFi coins with a large price increase. Arbitrum (ARB) is up 20%, Optimism (OP) is up 14%, Mantle (MNT), Manta and Starknet (STRK) are up more than 10%.
If Ethereum continues to grow, the ripple effect could drive many DeFi and L2 tokens to new highs.
