Layer 2 and decentralized-finance assets led Friday’s market advance, showing that risk appetite expanded beyond Bitcoin after post-Fed tightening fears eased.
Starknet gained approximately 18%, Arbitrum 17% and Uniswap 13%. The CoinDesk DeFi Select Index advanced 8.3% during the initial move and approximately 16% over 24 hours.
Ninety-eight of the CoinDesk 100’s constituents traded higher, according to CoinDesk’s market report.
The rally occurred as the 10-year Treasury yield fell below 5% and Brent crude moved below $103 per barrel. Both changes reduced near-term pressure from the Federal Reserve’s rate increase.
Aggregate cryptocurrency futures open interest rose almost 5% to approximately $141.2 billion, while daily trading volume declined 3% to $95 billion.
Growing open interest can indicate that traders are rebuilding longer-duration positions. It also increases the amount of leverage exposed if the market reverses sharply.
TOKEN RECON ASSESSMENT
Friday’s breadth was stronger than a Bitcoin-only breakout, but Layer 2 and DeFi tokens remain more sensitive to liquidity and leverage.
The confirmation signal is sustained spot volume and protocol activity after the initial macro relief and short squeeze end.
Watch funding rates, open interest, DEX volume, stablecoin liquidity and whether Layer 2 tokens retain their gains when U.S. markets reopen Monday.
Sources
CoinDesk. Layer 2 and DeFi tokens lead broad crypto rally
