Market-wide bullish trend
Overall upward trend: Data shows that about 94.8% of tokens achieved increases, with an average increase of 30.38%, indicating strong market confidence.
DeFi tokens performed outstandingly: DeFi tokens like UNI and AAVE led in price increases due to rising trading volume and usage.
Rise of Layer 1 ecosystems: Layer 1 tokens like Solana (up 39.41%) and Ethereum (up 31.14%) are favored by funds due to their ecosystem activity and technological advantages.
Reason for increase: Clarification of the US regulatory framework
The US has recently made progress in cryptocurrency regulation, providing a clear compliance outlook for the market:
GENIUS Act
This bill provides legitimacy and security for stablecoins (like USDT, USDC), requiring 100% reserve in USD or US Treasuries and accepting transparent audits. This enhances the credibility of stablecoins and attracts more institutional funds.CLARITY Act
By clarifying the classification of digital assets, this bill reduces compliance costs for DeFi protocols (such as Uniswap, Aave) and exchanges, promoting the adoption of related tokens.Anti-CBDC Act
This bill prohibits the Federal Reserve from issuing a central bank digital currency (CBDC), strengthening the position of decentralized assets like ETH and avoiding competition with CBDCs.
3. The Ethereum reserve craze among publicly listed companies in the US
Several publicly listed companies in the US are including Ethereum (ETH) in their asset reserves, driving up its demand and price:
Buying frenzy: Companies like SharpLink (holding 205,634 ETH), Bit Digital (holding 100,603 ETH), and BitMine (planning to buy 95,000 ETH) have made large purchases of ETH, sparking market enthusiasm.
Capital-driven: These companies' actions not only optimized their financial structures but also attracted Wall Street funds through the Ethereum ETF craze, making ETH the 'digital oil'.
Ecosystem effect: As the core network for DeFi and stablecoins, Ethereum benefits from the dual push of the market and capital.
Advancement of the GENIUS Act
Further implementation of the GENIUS Act brings direct benefits to stablecoins and related ecosystems:
Benefits for stablecoins: USDT and USDC are expected to gain more institutional adoption due to their compliance with regulatory requirements.
Indirect benefits for DeFi: DeFi protocols like AAVE and Curve benefit from increased stablecoin usage, further activating trading and lending activities.
In the current cryptocurrency market, certain tokens show significant favorable prospects due to multiple factors such as market trends, regulatory environments, and capital movements. These tokens are mainly concentrated in three major categories: stablecoins, DeFi tokens, and Layer 1 tokens. The following details the favorable tokens and their specific reasons.
Favorable tokens
1. Stablecoins
Stablecoins are cryptocurrencies pegged to fiat currencies (such as the US dollar), gaining attention due to their price stability and widespread use. Here are the main favorable stablecoins currently:
USDT (Tether)
The largest stablecoin by global trading volume, widely used for trading pairs and capital transfers.USDC (Circle)
Issued by Circle, known for its transparent auditing and high compliance, highly favored by institutions.DAI (MakerDAO)
A decentralized stablecoin generated by the MakerDAO protocol on Ethereum, soft-pegged to the US dollar and resistant to censorship.
2. DeFi tokens
DeFi (Decentralized Finance) tokens are core assets supporting the decentralized finance ecosystem, used for governance, liquidity provision, or lending, among others. Here are some popular DeFi tokens:
UNI (Uniswap)
The governance token of the decentralized exchange Uniswap, benefiting from a surge in trading volume.AAVE (Aave)
The token of the decentralized lending protocol Aave, gaining attention due to its innovative flash loan feature.CRV (Curve Finance)
The governance token of Curve Finance, focusing on stablecoin trading with low transaction fees.MKR (MakerDAO)
The governance token of MakerDAO, closely related to the DAI stablecoin.FXS (Frax Finance)
The governance token of Frax Finance, supporting a partially collateralized stablecoin system.ENA (Ethena Labs)
The token of Ethena Labs, related to its innovative stablecoin product USDe, with high potential.
3. Layer 1 tokens
Layer 1 tokens are fundamental assets that support the operation of public chain networks, carrying the value of the entire ecosystem. Leading Layer 1 tokens:
ETH (Ethereum)
The native token of the Ethereum network, serving as the core of the DeFi and NFT ecosystem, with continuously growing demand.SOL (Solana)
The token of the Solana network, known for high throughput and low-cost transactions, with rapid ecosystem expansion.TRX (Tron)
The token of the Tron network, focusing on decentralized content and applications, with low transaction fees.
