Several DeFi and Layer 2 (L2) tokens have seen significant gains following Ethereum's recent rally, driven by optimism over potential SEC approval of spot ETH ETFs. DeFi tokens like Uniswap (UNI), Maker (MKR), Lido DAO (LDO), and Ethena (ENA) posted impressive gains of 14-23%, with AAVE also rising over 16%. Additionally, Synthetix (SNX) gained 14%. L2 tokens such as Arbitrum (ARB), Optimism (OP), and Starknet (STRK) saw increases of 11-20%.
This surge is attributed to the broader positive sentiment in the Ethereum ecosystem. Ethereum's rise is largely fueled by expectations that the SEC will approve spot ETH ETFs, which would significantly boost institutional investment in the cryptocurrency market. The increased attention on Ethereum is also benefiting DeFi and L2 tokens, which are integral parts of its ecosystem.
Uniswap founder Hayden Adams recently commented on the upcoming FIT21 bill, noting that Congressâs recognition of DeFi as fundamentally different is a major step in the right direction for the industry. This acknowledgment is seen as a positive development that could lead to more favorable regulations for DeFi projects.
Ethereumâs continued rise could further boost these tokens, creating a ripple effect that might push several DeFi and L2 tokens to new highs. DeFi led the last bull cycle from late 2020 into 2021, and its recent performance suggests it could again play a significant role in the current market dynamics.
Moreover, Bloomberg analysts have increased the approval odds for ETH ETFs to 75%, adding to the bullish sentiment. If these ETFs are approved, it would likely bring a significant influx of capital into the Ethereum ecosystem, further driving up the prices of ETH and related tokens. The evolving regulatory landscape and increasing institutional interest are key factors that could drive this growth further.
