The crypto market is experiencing a sharp rally today (August 5, 2025), fueled by a mix of favorable macroeconomic conditions and a strong surge in Layer-2 tokens. This wave of momentum comes as major coins like Bitcoin $BTC

(BTC) and Ethereum$ETH

(ETH) push higher, while Layer-2 projects such as Mantle (MNT), Zora (ZORA), and Optimism (OP) lead the day with double-digit gains.

🔍 What’s Driving the Rally?

At the macro level, optimism is growing around a possible Federal Reserve interest rate cut in September. A weaker-than-expected U.S. jobs report has led markets to price in a more dovish stance from the Fed, boosting risk-on sentiment across both traditional and digital markets.

Bitcoin surged above $114,000, while Ethereum reclaimed the $3,700 level. More notably, Layer‑2 protocols—designed to scale Ethereum with faster and cheaper transactions—are catching investor attention amid rising developer activity and ecosystem expansion.

📈 Top Performers in Today’s Rally

Layer-2 tokens are the real winners of today’s session. Mantle (MNT) is up over 16%, riding high on increased TVL (Total Value Locked) and new DApp integrations. Optimism (OP) and Zora (ZORA) are also showing strong growth, as traders seek out projects with real utility and lower transaction costs.

📊 Crypto Price Chart – August 5, 2025

Coin/Ticker Price (USD) 24h Change Category

BTC $114,400 ▲ 1.2% Layer-1

ETH $3,710 ▲ 2.1% Layer-1

MNT $1.29 ▲ 16.3% Layer-2

ZORA $0.24 ▲ 6.5% Layer-2

OP $2.84 ▲ 5.4% Layer-2

XRP $0.71 ▲ 0.5% Payments

SOL $SOL

$168.50 ▲ 3.7% Layer-1

🌐 Market Outlook

This rally suggests a renewed appetite for risk among investors, especially in the Ethereum ecosystem and scalability projects. If the Fed confirms its easing stance in upcoming meetings, this bullish sentiment could extend through Q3.

With momentum strong and Layer-2s gaining institutional interest, the current rally may signal the start of a broader altcoin season.

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