Is it Finally DeFi Coin Season?

While many have come to believe that strong ETH rallies are indicative of impending doom in the market, ETH and associated DeFi coins are leading the altcoin market today as BTC reclaims $100,000.

Some of today’s top gainers include EigenLayer (EIGEN), which is up 28%, Lido Finance (LIDO) and Ethena (ENA), up 18%, and Uniswap (UNI), which is up 15% – all driven by ETH, which rallied 18% today to reclaim the $2,100 mark.

The sector’s price rally resulted in a 7% increase in Ethereum’s total-value locked (TVL) to $55 billion, its highest level in two months.

ETH is outpacing competing Layer 1’s on this rally, with SOL increasing by 9.5%, BNB by 3%, and HYPE by 4%. The only major Layer 1 to outperform ETH today is SUI, which is up another 20% after a strong month of price action.

In addition to the Ethereum ecosystem’s strong performance, the ETH/BTC ratio increased by 10.8% today. This marks ETH/BTC’s largest daily candle since May 20, 2024, when the Ethereum ETFs were surprisingly approved.

While most investors are thrilled with their portfolios, some traders are wary of the fact that an ETH/BTC reversion has been a harbinger of an impending market selloff.

One trader known as RunnerXBT asked, “What happened every single time (not shitposting, check the charts) that ETH outperformed BTC since September 2022?” alluding to this trend.

During the last major ETH/BTC rally in May 2024, BTC hit $71,000 on the day of ETH’s outperformance, and then slid by 21% to $55,000 by July 7.