Decentralised Finance (DeFi) tokens continued their recovery mode as the crypto fear and greed index rose. PancakeSwap (CAKE) price surged by more than 30% on Thursday and reached the highest point since July this year.
Synthetix (SNX) price, on the other hand, jumped to a high of $2.50, its highest level since August 2023. Again, like PancakeSwap, the token jumped by over 35% from the lowest point in October.
AAVE, the fourth-biggest DeFi platform in the world, jumped by 16.13% while Uniswap soared by 15%. Other top DeFi tokens like Curve (CRV), Compound (COMP), and Frax Share (FXS) were also the top performers.
These tokens jumped as the crypto fear and greed index jumped to the greed zone of 74. In most cases, cryptocurrencies jump when a sense of fear is spreading in the market.
They are also rising because of the strong Bitcoin performance. Bitcoin jumped to $34,450 on Thursday, the highest point this year. It has roared back by double-digits from the lowest point in September.
Crypto tokens, also known as altcoins, tend to rally when Bitcoin is doing well. And fortunately, as I wrote earlier on, Bitcoin’s rally seems to be gaining momentum since it has formed a bullish pennant pattern.
The coin has also remained above the 50-day and 100-day moving averages while the Relative Strength Index (RSI) has moved to the overbought level. This RSI is a sign that Bitcoin is gaining strong momentum.
They have also jumped after the latest Federal Reserve decision. The bank left interest rates unchanged between 5.25% and 5.50%, the highest point in over two decades. In his statement, Jerome Powell signaled that the Fed will likely continue pausing in the coming months.
Economists also expect that the Fed will also cut rates in the second quarter of 2024. Cryptocurrencies, which have survived the recent rate hike cycle, will likely see renewed momentum.
The DeFi ecosystem is also bouncing back. According to DeFi Llama, the total value locked (TVL) rose to over $42.7 billion.
Watch here: https://www.youtube.com/embed/X_PMHtMqFR0?feature=oembed
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